Paycheck Protection Program and Economic Injury Disaster Loans receive additional funding
Baton Rouge, La. (April 23, 2020) – Congress today passed $470 billion in supplemental funding for programs within the CARES Act, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). Both programs are highly sought by businesses across the country and saw initial funding allocations depleted within two weeks of applications being made available to businesses. With the House of Representatives’ approval, the legislation now goes to President Trump.
The legislation does not consist of new programs; rather, it provides clarification, and, importantly, additional funding. Being touted as “COVID Relief 3.5,” the bill includes the following:
- $470 billion in overall spending
- $310 billion to the PPP to allow more businesses to receive funds
- $250 billion unrestricted
- $30 billion for Insured Depository Institutions and Credit Unions with assets between $10 – 50 billion
- $30 billion for Community Financial Institutions, Insured Depository Institutions and Credit Unions with assets less than $10 billion
- $50 billion to the SBA’s EIDL
- $10 billion for EIDL grants
- $75 billion for hospitals
- $25 billion for testing
- $11 billion to assist local governments with testing needs
- $825 million for Community Health Centers and rural health clinics
“The burn rate on this critical cash flow was about $30 billion per day, and we anticipate this tranche will go more quickly,” said Liz Smith, senior vice president of economic competitiveness for the Baton Rouge Area Chamber (BRAC). “Businesses should be in touch with their lenders today about applying for these replenished funds.”
The additional funding to the PPP is expected to run out before the PPP application period closes on June 30. BRAC encourages businesses that would like to take advantage of a PPP loan to submit their applications as soon as possible. The SBA maintains a database of eligible lenders, searchable by zip code, here.
BRAC will continue to monitor COVID-19 legislation and provide analysis. For updates on this and other business-related guidance, visit brac.org/recovery.
About the Baton Rouge Area Chamber
The Baton Rouge Area Chamber (BRAC) leads economic development in the nine-parish Baton Rouge Area, working to grow jobs and wealth and to improve the business climate and competitiveness in the region. Today, BRAC investors include more than 1,500 small businesses, mid-sized firms, large industry and entrepreneurial startups, as well as individuals and organizations that support business and economic development. In this capacity, BRAC serves as the voice of the business community, providing knowledge, access, services and advocacy. More information is available at brac.org.