On April 24, 2020, President Trump signed a $484 billion relief bill into law. This is the fourth relief package passed with total costs approaching $3 trillion. The largest portion of the new relief bill will provide $310 billion to replenish the Payroll Protection Program (PPP). The PPP provides an opportunity for small businesses to obtain loans to cover eight weeks of payroll, benefits, and other expenses. The latest bill supplements the $349 billion for the PPP provided in March which ran out several days ago leaving many small businesses waiting for loan approvals and funding. With this new relief bill, $30 billion will be reserved for community-based lenders, small banks, and credit unions. Another $30 billion will be reserved for mid-sized banks and credit unions.
The replenishment of the PPP will provide much-needed assistance to small businesses that were not able to obtain a PPP loan in the first round of relief.
The $484 billion bill will also provide the following relief:
- $60 billion for the Economic Injury Disaster Loan (EIDL) program
- $75 billion for hospitals
- $25 billion to expand Coronavirus testing
Congress will immediately get to work on the next round or relief, likely to focus on states and municipalities. The National Governors Association requested a $500 billion relief package. President Trump has stated that he wants to provide relief from lost revenues for states and municipalities, investments in infrastructure, and create incentives for restaurant, entertainment, and sports spending.
To learn more about the PPP, or if you have any questions regarding this information, please contact Daniel Sturm, CPA, Partner at McKonly & Asbury at firstname.lastname@example.org or by calling (717) 972-5748. And to stay up-to-date with all current financial, accounting, tax, and other matters relating to COVID-19, please continue to visit our COVID-19 Resource Center for the latest updates.
Questions on submitting your PPP loan application or the forgiveness process?
Our team stands ready to assist you through the PPP loan application and forgiveness process. Do not go at it alone. Ensure you are submitting the right information and receiving the highest forgiveness amount possible. Visit our PPP Loan Consulting webpage by clicking here to request assistance or support.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although McKonly & Asbury has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.