It was announced last week (4/16) that initial funding for the PPP program in the CARES Act has been depleted and the SBA will not be processing further applications. Additionally, it was announced that the SBA EIDL loan funds were also depleted.
U.S. Chamber of Commerce officials say they are very confident that Congress (in a bi-partisan effort) will infuse an additional 250 billion dollars into the PPP programs early next week.
Another tidbit on PPP we learned is that the 60-day debt-forgiveness portion of the loan begins the date of the origination/ disbursement of the loan to your business. This is important to your financial planning for the expenditures of your PPP loan.
Since there is confidence around additional PPP funding, we recommend continuing the application process if your financial institution is accepting applications.
Was my PPP Application Processed?
If you are curious whether or not your PPP application was processed prior to the PPP funds running out, check with the financial institution where you applied. We are told that if you received a loan number from the SBA (through this financial institution), this likely means you will receive the funds during the current round of funds allocation.
1099 Employees/ Independent Contractors/ Self-Employed
We mentioned in a previous brief that the PPP loan application opened last week for 1099 employees/independent contractors/self- employed individuals. If you are in this category, U.S. Chamber released a useful guide for independent contractors and self-employed individuals to help them access assistance under the Federal CARES Act. This includes loans through the Paycheck Protection Program and the SBA Economic Injury Disaster Loan Program, as well as Pandemic Unemployment Assistance. Click here for their guide.
NACC Virtual Programming for CARES ACT
We are delighted to have NACC Chamber member, Dugan & Lopatka present an interactive 60-minute virtual program on the many tax provisions of the CARES Act that may affect you and your business. This complimentary webinar will be held Tuesday, April 21st at noon. For more information and to register, click here.
Future of SBA EIDL Funds
U.S. Chamber officials indicated in an update call today that they are less optimistic that these funds will be replenished with the same urgency of the PPP funds. The White House administration is not currently pushing for the replenishment. While they are expecting that eventually more funds will be added to this program, they are not clear when these funds will be available.
Reba Morgan Osborne
Director of Government Affairs
(630) 544-3387