Additional Funds Made Available under the Paycheck Protection Program and the EIDL Program

Please note that this alert updates prior publications made by our firm pertaining to the subject matter discussed below.

On March 27, 2020, the Paycheck Protection Program (PPP) was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Then, on April 16, 2020, the Small Business Administration (SBA) announced that the $349 billion initially authorized for PPP loans had been exhausted.

Today, April 24, 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act, an additional relief package which, among other things, authorizes $310 billion for additional PPP lending and $60 billion in additional funding for the SBA’s EIDL program.

Any business that has not yet submitted an application for a PPP loan should contact a participating bank as soon as possible. Any business that has previously submitted an application but did not receive the loan should contact its bank regarding the status of its application in light of the expansion of the program.

Applications for the EIDL program are being handled directly by the SBA. Applicants should contact the SBA with any questions.

This Client Alert has been prepared by Sills Cummis & Gross P.C. for informational purposes only and does not constitute advertising or solicitation and should not be used or taken as legal advice. Those seeking legal advice should contact a member of the Firm or legal counsel licensed in their state. Transmission of this information is not intended to create, and receipt does not constitute, an attorney-client relationship. Confidential information should not be sent to Sills Cummis & Gross without first communicating directly with a member of the Firm about establishing an attorney-client relationship.