On Tuesday, April 21, 2020, the U. S. Senate passed an interim funding bill that gives businesses and non-profit organizations an additional $320 billion for the Paycheck Protection Program, and on Thursday, April 23, 2020, the House of Representatives approved the funding, and the legislation was signed by President Donald J. Trump the next day. PPP initially was $349 billion, out of the $2.2 trillion CARES Act. The additional $320 is expected to make a big difference for many small business owners across the country, as well as their employees.
You should note that generally, the PPP loans are forgivable under most circumstances, as long as you can prove that you used at least 75% of your loan to cover your employee’s payroll. Unfortunately, the initial $349 billion in PPP loans were depleted as of April 16, causing the Senate to pass this new round of funding.
What if I could not get a loan because my business doesn’t have a credit relationship with a bank?
In the most recent $320 billion, the legislation allocated $60B of funding for PPP loans by small banks so they can reach even smaller businesses that did not have existing credit relationships with larger banks to apply for loans in the first round of PPP loans.
If you have any additional questions about how the new round of PPP loans may help you and your small business, please do not hesitate to give our experienced Rockland County business law attorney a call today. Our firm is here to help you and your business in any way possible.
Contact our experienced Rockland County firm
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We are ready to help you through every step of the legal process to ensure you and your business are protected and can thrive.