WASHINGTON (BRAIN) — The Small Business Administration officially received an additional $310 billion in funds to restart its two loan programs that ran out of money last week.
President Donald Trump signed the $484 billion COVID-19 relief bill into law on Friday after the House of Representatives and Senate approved the measure this week. The relief package also includes a requirement that the Trump administration develop a national COVID-19 testing protocol and provide additional funds to hospitals.
The SBA said in a release Friday afternoon loan applications will be accepted from approved lenders beginning Monday at 10:30 a.m. EDT.
"We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously," the SBA said. "All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan. ..."
The $349 billion Paycheck Protection Program exhausted its funds on April 16, the same day the SBA said it would no longer take Economic Injury Disaster Loan applications. The EIDL received an additional $60 billion.
"Our mission is to ensure that every small bicycle business owner and retailer in America understands their options and the resources available to support them," said PeopleForBikes COO Jenn Dice in a statement following the announcement. "Keeping people employed during this tough time is crucial, and the Paycheck Protection Program can help."
PeopleForBikes, which has continued to advocate for additional funding, has recommended retailers have all financial material prepared before contacting their lender. PFB says questions about the PPP and eligibility should be directed to their lender, local SBA office, lawyer or business insurance agent.
In just under two weeks after the PPP went online, the SBA said more than 1.6 million small businesses in all 50 states and territories received payroll assistance in forgivable loans. Nearly 5,000 lenders took part, with about 20% of the loans approved by lenders with fewer than $1 billion in assets and about 60% approved by banks with $10 billion or fewer in assets. No lender accounted for more than 5% of the total dollar amount of the program.
The low-interest EIDL offered up to $10,000 to businesses experiencing a temporary revenue loss. Both programs were offered to qualified small businesses with fewer than 500 employees. Businesses applying for the EIDL in certain industries may have more than 500 employees if they meet the SBA's size standards for those industries.
The PPP loans are forgivable if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
