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Second Round of Emergency Funding Expected for Small Business

Apr 22, 2020

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Small business owners who were shut out of emergency loan programs during the first round of funding will likely have another chance to apply. On Tuesday, the Senate passed a $483 Billion Coronavirus Aid Package to replenish the small-business payroll fund, support hospitals and provide for more testing. The House is expected to vote Thursday.

According to the Associated Press, $331 Billion, will go toward the Paycheck Protection Program (PPP), one of the SBA Emergency Loans for small businesses. The initial round of funding ran out last week.

Small business owners can apply for the loans themselves online. As long as certain criteria are met, a portion of the PPP loan may be forgiven, effectively turning it into a grant. If you’re a small business owner who wants help with the PPP loan, call Forward-Law to schedule a consultation at 864-335-9909. We can guide you through the process and help you achieve the best outcome.

This is a recap of the previous PPP loan program that was provided by the SC Chamber of Commerce on Monday:
PPP Recap
The PPP was originally passed as part of the Coronavirus Aid, Response, and Economic Security (CARES) Act. The program went into effect on April 3 and authorized up to $349 billion for job retention and certain other expenses at businesses employing less than 500 people. Small businesses and eligible nonprofit organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards for low-interest loans up to a maximum of $10 million. Part of the loan may be forgiven and not counted as income, as long as the money is spent on certain operating expenses the first eight weeks after the loan originated. 
 
The original funds were fully allocated by April 16. The Small Business Administration (SBA) recently released updated loan approval numbers through 12:00 pm on April 16:

Nationally:
  • Approval of 1,661,367 loans
  • Approval of $342.3 billion in loans (does not reflect the amount required for reimbursement to lenders per statute within the CARES Act.
  • 4,975 lenders have processed approved loans
  • Overall average loan size is $206,000
Top five sectors receiving loans:
  1. Construction (13.12%)
  2. Professional, Scientific, and Technical Services (12.65%)
  3. Manufacturing (11.96%)
  4. Health Care and Social Assistance (11.65%)
  5. Accommodation and Food Services (8.91%)
In South Carolina:
  • Approval of 22,933 loans have been approved
  • Approval of $3.81 billion in loans

Understanding SBA Emergency Loans

By Forward Law • 07 Apr, 2020
Business owners around the country are struggling with questions about how to stay afloat during the Coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) offers some help by providing financial support and tax incentives for small businesses. If you own a business and you’re trying to figure out which emergency loan to apply for or whether you should apply for both, we can guide you through the process to help you achieve the best outcome.
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