Senate Passes Legislation to Provide Additional $484B Funds for COVID Small Business Relief

Key Highlights

• The Paycheck Protection Program (PPP) to receive additional $310B to replenish funds that were already awarded to keep employees on small business payrolls

• The Economic Injury Disaster Loan (EIDL) fund to receive additional $50B

• • $60B of PPP funding to be set aside for small and medium sized community banks exclusively
  • $75B to go to hospital relief

• $25B to be designated for COVID-19 testing

Tuesday evening, the US Senate unanimously passed a $484B COVID Small Business Relief legislative package.  This legislation is to head for the House of Representatives for a vote on Thursday.

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This $484B package includes augmented funding that was initially offered to the Small Business Administration’s Paycheck Protection Program (PPP).  The PPP was created as part of the Coronavirus Aid, Relief and Economic Security Act (CARES) in March.

The PPP was designed to keep employees on small business payrolls with an initial budget of $310B.  That funding was depleted within two and a half weeks due to the enormous volume of people who were either laid off, furloughed or had reduced hours.

Now the PPP is to offer an additional $310B once the House votes on Thursday to authorize this bill.  President Trump supports passage of the legislation.  Trump tweeted on April 21, “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing.”

Guidance for REALTORS® who have already applied for PPP and EIDL”

• • If you have already applied for an EIDL, you do NOT need to reapply as the SBA is processing applications on a first-come, first-served basis
  • If you have not yet applied for an EIDL, check with the SBA application page once this additional funding is signed into law.  To make sure, check on Thursday, Friday, the weekend, Monday, etc. until you have an answer.  The SBA is to re-open the application very soon after the House passes and President signs the package into law
  • If you have already applied for PPP through an SBA lender but haven’t yet been approved, check with your lender to determine whether or not you need to re-apply.  Do this Thursday, Friday, Monday, etc. until you have an answer.
  • If you haven’t yet applied for PPP through an SBA lender, have your completed application and your documentation ready to provide to your lender

• For businesses with employees – have payroll documentation

• For independent contractors – have you 2019 Form 1040, Schedule C and 1099-MISC

• If you have existing relationship with an SBA Lender, go to that lender FIRST BUT Be Prepared to GO to Multiple Lenders just in case – You can find SBA lenders on the SBA site.

Thank you to National Association of REALTORS® and CNBC.

Also read: Housing Markets in Northeast & Florida Extremely Vulnerable to COVID-19 Impacts Will $2.2T CARES Act Sustain Economy or Are Relief Provisions Even Barely Enough? “The Economy is Clearly in Ruins Here”