COVID-19: Additional $480 Billion Added to Relief Fund for SMBs
On April 24, 2020, President Trump will be signing a bill to pass an additional $480 billion relief package, including billions of dollars in new funding for small businesses hurt by the COVID-19 outbreak.
Paycheck Protection Program (PPP):
Thus far, 1.6 million small businesses have received funding from PPP, according to the Small Business Administration, but hundreds of thousands are still waiting to hear on their application status after money for the program ran out last week.
The program was set up to deliver aid to small businesses struggling from the economic crisis that has been triggered by the pandemic. Funding for the program, unfortunately, ran dry earlier this month which prompted concerns and outcries from the small business community.
The new deal will infuse another $310 billion into PPP, an added $10 billion for administrative costs, $60 billion for Injury Disaster Loans (which covers forgivable grants for small businesses), $75 billion for hospitals and healthcare providers who've been stretched thin by the pandemic in hopes to address Coronavirus expenses and lost revenue, and an additional $25 billion to facilitate and expand testing.
Of the total amount dedicated to testing, there will be $11 billion given to states and localities "to develop, purchase, administer, process and analyze COVID-19 tests." The rest of the money will be given to other entities, including federal agencies, to invest in promising new technologies and to distribute to labs.
A breakdown of the new funding:
>> $310 Billion for Small Business Loans
>> $60 Billion for Small Banks and Lenders
>> $75 Billion for Hospitals
>> $25 Billion for Virus Testing
To learn more about applying for your small business loan, click here.
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