What’s in the New Small Business Relief Bill?

(CNN report 4/21/20)

Here’s what the agreement includes, according to a bill text obtained by CNN.

$310 billion for additional Paycheck Protection Program loans

The original $349 billion allocated for the Paycheck Protection Program loans for small businesses ran dry in under two weeks due to outsized demand — and came in for criticism because restaurant chains were able to access the funds. Some say it would have run out even sooner had there not been so many technical problems with the Small Business Administration’s loan processing system.

Lawmakers have now agreed to add another $310 billion to the fund. How quickly that second tranche of money would become available isn’t clear yet. Once the bill is signed into law, it would likely take an additional day before the SBA can reopen the program, according to one banking industry source.

Also not clear: how long before that additional money is exhausted. There is a large backlog of applications in process from businesses that have already applied. The expectation is that it could be exhausted in under 10 days.

$60 billion for small lenders and community banks

The new deal sets aside $30 billion of the additional Paycheck Protection Program funds for loans made by federal insured lenders with assets between $10 billion and $50 billion. And it would reserve another $30 billion for loans made by community financial institutions, and small federally insured banks and credit unions with assets under $10 billion.

$10 billion for Economic Injury Disaster Loan grants

The deal would increase funding by $10 billion for Economic Injury Disaster Loan grants. Like the Paycheck Protection Program loans, the initial funding for these grants ran out quickly.

The promise had been that small business owners could essentially get up to $10,000 within three days of applying for it directly from the SBA website.

The Economic Injury Disaster Loan money does not have to be paid back if it is used to maintain payroll, cover paid sick leave and service other debt obligations. But if a small business owner gets both a grant and a forgivable Paycheck Protection Program loan, the forgiveness of the latter loan would be reduced by the amount of the grant.

But nearly every small business owner CNN Business spoke to in the past few weeks said they had applied for a disaster loan early but many had not received any money from it yet, and in some cases had not even gotten confirmation that their applications had been received.

Read full article here.

Join HVEDC & Senator Kirsten Gillibrand for a video discussion on the CARES ACT

Join HVEDC and United State Senator Kirsten Gillibrand for a video-discussion to discuss the CARES ACT and future legislation designed to help our economy get back to work.

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IMPORTANT UPDATES from Governor Cuomo

Replay of today’s COVID-19 press briefing.

State to take a regional approach to reopening

Governor Cuomo announced the state will take a regional approach to reopening and will make decisions on which counties and regions to open and when to open them based on the facts and data specific to that area. Lieutenant Governor Kathy Hochul will coordinate Western New York’s public health and reopening strategy, and former Lieutenant Governor Robert Duffy will volunteer as a special advisor to coordinate the Finger Lakes’ public health and reopening strategy. Read more.

Cuomo says Michael Bloomberg is helping New York launch testing and tracing program

Coronavirus Marketing Playbook for Small Business

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