The Payroll Protection Program (PPP) opened up on April 3, 2020 and ran out of funds on April 16, 2020. In that 13 days, approximately 1.7 million loans were approved for over $342 billion. Details on the PPP activity are available in a
report issued by the SBA
on April 16, 2020.
In an article published by
, an analysis of this information indicates approximately 68 percent of Indiana businesses with less than 500 employees may have received enough in loan funds to cover 2.5 months of payroll. Indiana ranked 16
in the U.S. in this analysis. For Indiana businesses in the remaining 32 percent (that haven't been able to get a PPP loan), additional funding is here.
The President signed the bill today (April 24, 2020) for additional funding for the PPP through the Paycheck Protection Program and Health Care Enhancement Act. The following is a summary of the funding of the bill:
- An additional $310 billion for the PPP:
- $310 billion will go toward the existing PPP (to restart the program that was suspended on April 16)
- $60 billion (of the $310 billion) is earmarked for lending institutions with assets under $50 billion (smaller community banks and credit unions, specifically)
- $30 billion for loans made by institutions with assets between $10 billion and $50 billion; and
- $30 billion for loans made by institutions with assets less than $10 billion
- An additional $60 billion for Economic Injury Disaster Loan Program (EIDL):
- $50 billion for EIDL and
- $10 billion for the EIDL grant program (does not have to be repaid)
- Includes expanded eligibility for agricultural enterprises to be eligible for EIDL as well as PPP
- $100 billion for healthcare:
- $75 billion for reimbursement to hospitals and healthcare providers to support the need for COVID-19-related expenses and lost revenue
- $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests
We have seen several indications that the additional PPP funds, like the first round of funding, are insufficient to cover the demand for these loans and thus they are expected to go quickly.
If you were unable to get a PPP loan in the first go around, this will be your second chance. Contact your banking institution and do what you can to be prepared to apply as soon as the application process reopens.
If we can assist you in explaining the programs' provisions, analyze the potential benefits or assist you with gathering the needed information, please call any Sponsel CPA Group Team member or our colleagues listed below.