As Americans for the Arts continues to track, advocate, and report on federal relief opportunities, we wanted to share two important updates on federal loan programs.
On June 5, the President signed into law the Paycheck Protection Program Flexibility Act to provide borrowers greater flexibility in getting their loans forgiven. Yesterday, U.S. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza released a
outlining the changes.
- Please note that while the "covered period" of the loan was extended from eight weeks to 24 weeks, the deadline for applying for a PPP loan application remains June 30, 2020. If you're still interested in applying for a forgivable PPP federal loan, please do not delay. There is still more than $130 billion in available funds and you must apply by the end of this month.
On June 8, the Federal Reserve announced the expansion of the
Mainstreet Lending Program
to small and medium-size businesses. While these types of loans are not the forgivable type and were previously only available to major corporations, the terms may be attractive and provide much more flexibility for use of funds. $75 billion is being made available for these loans through the CARES Act.
- Please note that the Federal Reserve Board also confirmed that they will soon be announcing an additional loan program specifically for nonprofit organizations.