President Trump signed the $484 Billion stimulus bill, adding additional relief for small businesses and healthcare. This stimulus package includes $310 Billion in additional funding for Paycheck Protection Program (“PPP”) loans. The funds are expected to be absorbed far more quickly than the 13 days of the initial PPP funding.
In response to public companies having received PPP loans from the earlier stimulus package funds, attention is being drawn to an applicant’s need for the loan. The application requires the Borrower to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers who have already received a PPP loan and are not able to make such certification may return loan proceeds to their lending institution by May 7.
Small businesses that have applied for a PPP loan, but were not able to be approved and funded due to shortage of fund availability, should immediately follow up with their lenders to ensure they are in the queue for approval and/or funding.
The US Senate’s committee on Small Business and Entrepreneurship has prepared a guide to the CARES Act for small business owners, including information about loan programs, counseling. and training.
For businesses with 3-20 employees (W-2s), the U.S. Chamber of Commerce Foundation is sponsoring the Save Small Business Fund. It is for short-term relief. The fund will provide $5,000 grants to small employers in the United States and its territories that must be applied toward business expenses. Applications open weekly, until the fund is exhausted. Applicants are encouraged to check daily for the application, because once the week’s funds are exhausted, the application closes until the next round of funds becomes available. Grants will be awarded weekly until all funds are disbursed.
To qualify for the new Save Small Business Fund, the applicant must:
(i) employ between 3 and 20 people;
(ii) be located in an economically vulnerable community (determined by zip-code); and
(iii) have been harmed financially by the COVID-19 pandemic.
Economically vulnerable communities have been defined by zip code, based on the Distressed Communities Index. To see if the applicant is located in an eligible area, enter the applicant’s zip code into the qualifier check on the Fund’s website.
The application may be found at www.savesmallbusiness.com. The application is expected to be brief, taking about 10 minutes to complete, and will require the applicant’s W-9 (Request for Taxpayer Identification Number and Certification).
We are committed to assisting our clients through the loan process, and will provide updates as more information becomes available. Please contact Len Gambino (312-648-2300) or Joan Berg (312-775-3624) with any questions you may have.