Update: This blog post was originally published on April 21, 2020. On April 24, President Trump approved $321 billion in additional funding for small businesses. This is part of $484 billion allocated in that legislation, intended to bolster the American economy at this time.
More federal funds may soon be on their way to small businesses throughout the country. Today, the U.S. Senate passed the latest coronavirus relief bill, which includes over $300 billion to replenish the Paycheck Protection Program (PPP).
The last major piece of relief legislation, the Coronavirus Aid, Relief, and Economic Security (CARES) Act – signed into law on March 27 – set aside $349 billion for the program, but that cap was reached earlier this month. The additional funds would help businesses that were unable to obtain loans due to exhaustion of the initial $349 billion.
The PPP helps ensure small businesses in crisis receive enough funding to meet payroll for their employees. Loans are administered through the Small Business Administration (SBA). In most cases, if the funds are used to cover the costs of their payroll, the loans will be “forgiven,” effectively making them more like a grant.
Generally, a business must employ fewer than 500 people to be eligible for this form of relief.
This legislation goes to the House of Representatives next for review. In the meantime, keep an eye on the Paycom blog for further updates.