Federal relief in connection with the COVID-19 pandemic has reopened for the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
The PPP has been refilled with $321 billion. The majority is expected to go quickly, especially with all the unprocessed PPP loan applications in queue at banks across the country. If you applied in the first round:
- Call your bank to follow up on the status.
- Ask your banker, what additional information it needs to process your application.
- Confirm your application is in process and confirm your bank is moving it forward.
More than 43,000 businesses in Michigan impacted by the COVID-19 outbreak received more than $10 billion in forgivable loans during the first round of PPP funding. Nationally, $349 billion was authorized for the initial round of PPP, all of which was committed by April 16 – less than two weeks after the application period opened – demonstrating the continued need for small business relief.
Michigan small businesses – including hospitality and food industry businesses and sole proprietorships, independent contractors and self-employed persons – are eligible to apply for loans through the PPP to help ensure employees continue receiving paychecks. The PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll and may be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The MIpaycheckprotection.com website includes key PPP eligibility information, videos and instructions to help with the application process, information on authorized SBA lenders and more. The Michigan Paycheck Protection Program website was built through a collaboration between the Small Business Association of Michigan, Michigan Association of Certified Public Accountants (MICPA), the Michigan Economic Development Corp. and the Michigan SBDC
Last week, the President signed a $484 billion package, The package also provides another $60 billion in economic disaster loans for small businesses, $75 billion in emergency relief for hospitals and $25 billion to ramp up coronavirus testing.
With the additional funding provided by the new COVID-19 relief package, SBA has also resumed processing EIDLs and advance applications that are already in the queue on a first come, first-served basis. The SBA will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.