WASHINGTON — The Small Business Administration (SBA) has resumed accepting applications for the Paycheck Protection Program (PPP) effective April 27 from approved lenders on behalf of any eligible borrower.
President Trump signed an extension on April 24 of the federal COVID-19 economic stimulus package, the Paycheck Protection Program and Health Care Enhancement Act, valued at $484 billion.
The funding package, approved by both the Senate and House, includes an additional $320 billion to fund the PPP, which is designed to help businesses keep their employees working during the COVID-19 crisis.
Another $60 billion will be funneled through local banks and financial institutions as a way to disperse the cash more broadly.
The new funding comes after the original PPP fund of $349 billion ran out in about two weeks.
Money for the program can go toward business expenses such as payroll, mortgage and rent. Loans are forgivable if businesses, for the first eight weeks, keep their employees and payroll levels.
"The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans. With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief," SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven Mnuchin said in a joint statement.
"We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously. 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."