As a result of the April 24th signing of the Paycheck Protection Program and Health Care Enhancement Act into law, the Small Business Administration's loan/grant programs aiming to ameliorate the impact of the COVID-19 crisis reopened for business at 10:30am on Monday, April 27, 2020.
The new law increased the authorization and appropriations level for the Paycheck Protection Program (PPP) from $349 billion to $659 billion, and the Emergency Economic Impact Grants from $10 billion to $20 billion. The Economic Injury Disaster Loan (EIDL) Program got an additional $50 billion in appropriations.
According to Bloomberg, "The largest U.S. lenders have been preparing a barrage of loan applications since the first round of the program ended April 16."
SBA has announced a cap of $60 billion on the value of PPP loans that each bank can arrange, but also says that their processing system will now allow up to 15,000 applications to be submitted at one time as a batch.
The Insights Association had contacted Congress and the President in support of further small business loan program funding on April 8.
At the same time, IA asked Congress and the White House to relax the SBA affiliation rules currently restricting the access of small businesses with equity investors, especially those with minority investments. Unfortunately, while the law answers our request for funding, the eligibility requirements remain unchanged, although the most recent interim regulations do clarify a few other points for potential applicants.