The President today signed legislation to provide additional funding to the very popular Paycheck Protection Program (PPP) and the Emergency Economic Injury Disaster Loan (EIDL) Grants. The funding for the PPP has been increased by $310 billion and the EIDL grants have increased by $10 billion.
Funding has been set aside for insured depository institutions, credit unions and community financial institutions for PPP and EIDL grants. These funds are available to the smallest of the business community that may not have a banking relationship with other financial institutions. Of the $310 billion, $60 billion is being set aside for these institutions. Should your business fall into this category and you do not currently have a relationship with a bank, credit union or community development financial institution, you are recommended to contact the offices of State House Representatives David Cicillini or Jim Langevin for assistance. You can also review lender list by state [here].
Banks have informed business owners not approved under the first program that they do not need to reapply if they already completed a loan application. We recommend contacting your financial institution to make sure your prior loan application is considered.
The legislation also funds an additional $75 billion for Public Health and Social Services Emergency Fund. The funds will aid health care providers for health care related expenses or lost revenues attributable to COVID-19.
An additional $25 billion will be allocated to prevent, prepare for, and respond to COVID-19 for necessary expenses to research, develop, validate, manufacture, purchase, and expand capacity for COVID-19 testing.
The Disaster Loans Program will receive $50 billion to be used to prevent, prepare for and respond to COVID-19. The Emergency EIDL Grants will receive $10 billion for similar purposes as the Disaster Loans Program.