SENATE PASSES NEW $484 BILLION STIMULUS BILL

Apr 22, 2020

SENATE PASSES NEW $484 BILLION STIMULUS BILL

SENATE PASSES NEW $484 BILLION STIMULUS BILL REPLENISHING PPP AND EIDL PROGRAMS HOUSE EXPECTED TO PASS TOMORROW

PPP Gets Another $310 billion

The initial $350B allocated to PPP loans ran out in 13 days, just as sole proprietors, independent contractors and the self-employed were starting to apply. Many large corporations, taking advantage of loopholes to meet the 500 employee test, applied quickly and received multi-million dollar PPP loans.

Hopefully, with these large loans out of the way, this next infusion will go primarily to smaller employers and will last longer. But, a massive backlog of applicants has formed, and we wouldn’t be surprised if this next round is quickly depleted as well. Therefore, if you have not yet submitted a PPP application, do so ASAP.

EIDL Gets Another $60 Billion

The EIDL program had run out of funding as well, and the $60B in new funding will go towards grants up to $10,000 and larger EIDL loans. You can apply for both.

The PPP loan is more attractive because the principal will be forgiven to the extent it is spent on appropriate payroll and other costs. The EIDL may be appealing as an additional source of financing, because the repayment terms will be quite favorable – 3.75% interest, no payment in the first six months and maturities up to 30 years out.

Some of us who filled out the EIDL online application are starting to receive the EIDL advances through direct deposits into our bank accounts. These advances have taken much longer than the promised three days and they are not a flat $10,000, but rather, $1,000 per employee up to $10,000.

The SBA needs to get better organized with the EIDL program. So far, it is making these EIDL advance deposits, but not following up with borrowers on whether they’ve been approved or not for larger loans -- or how and when (or whether) these advances will have to be repaid.

Collier & Associates, Inc. will update our blog as the CARES Act progresses. We take pride in continuing to keep our subscribers and website visitors updated on current events during this extraordinary time.

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1 Comment

  1. Steve Joseph on at 3:49 pm

    Brandon, is there any pushback from congress or the public regarding large corporations getting in on the money? I can’t believe there isn’t any outrage from somewhere. Seems totally unfair.
    Anyway, I appreciate the updates and recommendations. I am in line for the next ppp funding, hopefully! Stay well. Steve



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