Supplemental Funding Will Favor Small Businesses and the “Un-banked”
“We Have a Deal”
Tuesday Morning, Senate Minority Leader Charles Schumer announced that senators “have a deal” on a supplement to the Paycheck Protection Program supplement to the CARES Act.
The bill is the fourth bill aiming to address the economic and epidemiological effects of the Coronavirus epidemic, which as of Tuesday has killed at least 43,000 people in the United States.
Many of those not suffering the effects of the deadly virus, are trying to figure out how to salvage their income-generating businesses during and after the pandemic.
New Round of Funding
If you’ve been waiting in limbo for information about a pending PPP or EIDL application, there is good news. Under the framework that could be voted on by the Senate as early as this afternoon, the Senate is allocating another $300bn for the Paycheck Protection Program, and another $50bn for the emergency relief facility.
Also being discussed are new restrictions on who can receive these supplemental dollars, favoring small businesses, and an attempt to disqualify larger businesses who were favored by the CARES Act and the Small Business Administration.
125bn of the money is being appropriated for the “unbanked” and minorities who have difficulty obtaining conventional financing.
Throw Some Elbows; Get That Application In
If you were discouraged by the exhaustion of the previous round of funding for these programs, then you now have reason to perk up. Get that application and supplemental materials in. Apply for Payroll Protection with your bank and apply for the EIDL and request a loan advance from the Small Business Administration. Be sure to do both! If a website says “not accepting applications” then keep checking back with it. Funding is on the way.
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