The U.S. Senate passed legislation on Tuesday, April 21 to replenish funding for several coronavirus small-business relief programs. The House is expected to take up a vote on the measure later on Thursday, April 23.
Under the Senate agreement, the Paycheck Protection Program (PPP) will receive $310 billion in new funds, while the Economic Injury Disaster Loan (EIDL) fund will receive an additional $50 billion. The bill sets aside $60 billion of PPP funding exclusively for small and medium-sized community banks. The Senate bill also contains $25 billion for coronavirus testing and $75 billion for hospitals. Nonprofit Quarterly‘s Steve Dubb recently detailed “What’s Included, What’s Not” in the bill.
Quick Guidance for Nonprofits on the PPP and EIDL
- If you’ve already applied for an EIDL: The SBA is processing applications already in their system on a first-come, first-served basis. You do not need to reapply.
- If you have not already applied for an EIDL: Check back at the SBA application page once the additional funding is signed into law. The SBA will re-open applications shortly afterwards.
- If you’ve already applied for a PPP loan through an SBA lender but have not been approved yet: Check with your lender to see if they are maintaining a queue of applications during the lapse or if you will need to reapply when the renewed funding comes through.
- If you have not applied yet for a PPP loan through an SBA lender: Have the application form filled out and your documentation ready to provide to your lender. (For nonprofits with employees, have payroll documentation; for independent contractors, have your 2019 Form 1040, Schedule C, and 1099-MISC.) If you have an existing relationship with an SBA lender, you should go to that lender first once the program reopens, but be prepared to try multiple lenders, which you can find on the SBA site.