We hope this message finds you and those close to you safe and healthy during this unprecedented time.
A new bill has been signed to provide additional funding to small businesses and our healthcare system. The new bill will allocate $320 billion for the Paycheck Protection Program (PPP) and $60 billion for the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program.
The Treasury Department released a statement saying, ”We encourage you to apply as quickly as you can because there is a funding cap.” Since the loan programs are taking applications on a first-come-first-serve, small businesses should apply as soon as possible.
Here are some answers to common questions about the new funding.
|Some banks/lenders won’t accept my application without an existing business account. What should I do?
Yes, businesses with previous ties to nationwide banks are often prioritized. However, there are smaller community banks and credit unions that accept new customers. We have cited a few lenders that do not require an existing account on our Coronavirus Stimulus Package page.
I did not get a response to my filed application. Should I apply again?
This has been the case for thousands of small businesses that applied during the first round of funding. We recommend checking with your banks to confirm your loan status. The SBA’s new guidance on Thursday will make it less likely for large companies to access the new funding, providing more opportunities for smaller businesses.
Where can I use the new funding?
The loans should still be used for employee payroll, benefits, mortgage, utilities, and other lease agreements before February 15, 2020. More information on loan usage can be found here.
You can find more information about the loans on our recently updated Coronavirus Stimulus Package page. We will continue to share updated information on the CARES Act as they evolve.
Our business was created to support small businesses, and your success is important to us. We are here for you, ready to support you during this challenging time.