After more than a week of intense negotiations, the senate reached a deal today on a $484 billion interim coronavirus funding bill this week. The agreement will replenish the Paycheck Protection Program (PPP), the stimulus bill’s emergency loan program for small businesses, and provide billions for hospitals and expanded coronavirus testing. With the bipartisan agreement in congress, we now await passage in the house and President’s signature. For those wondering what this means for you, here is a quick summary:
EIDL Economic Injury Disaster Loan Emergency Advance
- 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.
PPP – Paycheck Protection Program Loan / Grant
- 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 businesses with employees, have payroll documentation; for independent contractors, have your 2019 Form 1040, Schedule C, and 1099-MISC.
Here is a breakdown of the difference between EIDL and PPP by NAR: (link to PDF for download or print version)