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April 22nd, 2020
COVID-19 News & Updates
As you know, the Coronavirus is having an impact on business and society. Our thoughts and prayers are with all those impacted by the situation. We will be providing daily and weekly updates about COVID-19 to you. We hope that you find these interesting and informative.

Replenishing the PPP Loan with additional $320 billion

First Come, First Serve, Apply Now if you haven't already!

After the $349 billion allocated to  small business Covid-relief loans  lasted all of two weeks, Congress reached an agreement Tuesday to add an additional $320 billion in funding. The  Senate passed the bill  Tuesday afternoon, and the House is expected to vote as soon as Thursday.

The $320 billion will go to the  Paycheck Protection Program (PPP) , which provides government-guaranteed loans to small businesses. If, after eight weeks, the businesses show that they used at least 75 percent of the loan for payroll, the loan can be forgiven. 

The new relief package guarantees that at least $30 billion of the new funds  will be designated for community banks  so that they don't have to compete with larger institutions. Because lenders now have a backlog of applications, this money is expected to go quickly, too.

Congress also allocated $60 billion for the Economic Injury Disaster Loan program. That money is supposed to be used for working capital. Businesses were able to ask for the first $10,000 of any loan as an advance, which would not have to be paid back if the loan was denied. Because of the demand for the loans, that advance quickly dropped to a maximum of $1,000 per employee. The SBA received loan requests worth more than $400 billion through the program, which had only $10 billion in funding initially, according to Ami Kassar, the founder and CEO of MultiFunding, a small-business loan adviser in Pennsylvania.

It wasn't until April 10 that independent contractors and other self-employed people were able to apply for the loans, and Treasury didn't release guidance on how their payroll should be calculated until April 14. By April 16, all the money was spoken for--while precious few business owners had actually seen anything in their bank accounts.

Once signed into law, the relief package will add a total of $484 billion in funding, including $75 billion for hospitals and $25 billion for expanded testing.
Arkansas Gov. sets May 4 goal to begin lifting restrictions;
COVID-19 deaths at 38

LITTLE ROCK (KATV) — Arkansas Gov. Asa Hutchinson set a May 4 goal to begin lifting restrictions that have been in place since COVID-19 began spreading through the state in March.
Hutchinson outlined criteria from the White House to reopen the economy on Friday during a news conference.

"Several of the criteria for reopening, we meet," Hutchinson said. "But we are still on the upswing in our cases. And our testing capacity needs to increase."

On behalf of all of our team, please know that we are here for you and that we will continue to do everything we can to support you during this time. Please do not hesitate to let us know if there is anything you need! 

The Hatcher Agency