April 22, 2020

Payroll Protection Program Funding Extended

Congress voted to add $310 billion in funding to the Payroll Protection Program (PPP). Banks have said the funds are likely to run out quickly. The bill adds one important change to the bill by adding a set aside for “(I) insured depository institutions with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000;” and “(II) credit unions with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000.” The bill provides that not less than $30 billion in loans will be made by these community financial institutions. The Senate passed the bill on April 21, and the House on April 23. It now goes to President Trump, who is expected to sign it.

Note also that the Treasury Department has clarified that contributions to an ESOP qualify as payroll under the program.

A good article on tips for applying for the loans appears in the Washington Post.

Update on April 23: 3:27 pm Pacific. The House voted 388 to 5 (with one lawmaker voting "present") to approve the stimulus bill, which includes funding for the PPP. 

Update on April 23: Today the SBA issued a new guidance in the form of frequently asked questions.