Latest on Federal Assistance Programs

Print Friendly and PDF

Federal aid has been replenished for the SBA Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).

Loan Forgiveness:

SBA PPP Latest Updates

May 29: More than $100 billion in PPP funds remains available. Learn more.

May 28: The U.S. House voted to make coronavirus-related small business loan programs more flexible including more time to spend and repay funds, the ability to spend more on rent, and less on the payroll. The Bill is expected to be voted on by the U.S. Senate next week. Learn more.

May 23: The Small Business Administration reported that 4.4 million PPP loans have been approved for a grand total of more than $511 billion. There are around $138 billion in appropriated funds under PPP that have yet to be deployed; 79% of the loans are under $100,000.

May 21: The SBA issued additional comments on the loan forgiveness process for both entrepreneurs and banks. This new round of guidance gives more clarity and leaves a number of questions still unanswered.

May 16: SBA issued the Loan Forgiveness Application that will be used by PPP borrowers to determine and report how much of their PPP loan will be forgiven. Read more about forgiveness application issues and answers. Download the Loan Forgiveness Application.

May 14: Previous PPP guidance from the SBA left some businesses questioning whether they would have to repay their PPP loan by May 14, 2020. Through a frequently asked question (FAQ), the SBA has issued the following safe harbor and additional guidance about how they will review the good faith certification:

  • The safe harbor provides that any borrower, who with their affiliates, that have received a PPP loan of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.
  • Upon review, if the SBA makes a determination that a borrower with a loan greater than $2 million did not meet the certification on the necessity of the loan and the loan was not repaid by May 14, 2020:
    • The SBA will seek repayment of the loan
    • The SBA will inform the lender that the loan is not eligible for forgiveness
  • If the borrower repays the loan after receiving notification of the determination from the SBA, the SBA will not pursue criminal or civil penalties

The above guidance should provide some comfort to borrowers that were evaluating whether the loan should be paid by May 14, 2020. However, for those borrowers with loans greater than $2 million it is still unknown what criteria the SBA will use to evaluate if the business made a good faith certification with respect to the necessity of the loan. Therefore, we continue to recommend that borrowers carefully review and document their financial situation to meet the certification that the loan was necessary to continue ongoing operations.

What to Do Next to Get a PPP Loan?

  1. Call your bank to follow up on the status.
  2. Ask your banker, what additional information it needs to process your application.
  3. Confirm your application is in process and confirm your bank is moving it forward.

If you haven’t applied, and now your bank is no longer taking new applications: 

  1. Call community banks.
  2. The bill makes additional guarantees that a portion of the funds must be granted by smaller lenders that cater to truly small, local businesses. At least $60 billion must be granted by small banks, community financial institutions, and credit unions.

Additional Guidance to Note:

  • Round two of PPP earmarks $60 billion for the types of small businesses that were passed over in round one. How does this work, exactly?
    • The ear-marked $60 billion goes directly to SBA-approved small banks, community financial institutions, and credit unions. So if you’re a small business looking for a smaller loan, we recommend you find a small financial institution in your state that’s participating in the PPP. View an official list here.
    • Start with the community banks and credit unions first, as they’re the most likely to be serving the smallest businesses with the provisioned $60 billion PPP fund.
  • Loans not processed in the initial round should remain in the queue for the additional funds.
  • Banks that experienced technical difficulties during the launch of the first round should be better prepared to process loans for the upcoming round.
  • 501c6 and other nonprofits (except 501c3 and nonprofit veteran service organizations) will not be included in upcoming PPP funding.
  • CDFIs will be made eligible to access PPP resources to make small business loans in the communities they serve.

SBA Economic Injury Disaster Loans (EIDL)

The new bill also provides an additional $60 billion for the EIDL program, which ran out of funding too. The funding includes $10 billion for the EIDL emergency grant, doubling the size of the original $10 billion fund. You can apply for the EIDL as soon as the SBA website is accepting applications again. The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters.

The SBA has issued guidance that it will provide initial EIDL loan disbursements of up to $15,000, in addition to the advance of up the $10,000 detailed in the guide below. View more on the EIDL process, how to get started, and what you need to apply, by visiting:


Back to COVID-19 Business Resources