Congress Intends To Add $250B For Small Business PPP Loans

Congress Intends To Add $250B For Small Business PPP Loans

The PPP loan was a key component of the CARES Act, which became law on March 27.

From SEMA eNews

Congressional leaders are negotiating legislation to expand the Paycheck Protection Program (PPP) loan by $250 billion with half of that amount being distributed through community banks.

The PPP loan was a key component of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which became law on March 27, 2020. The CARES Act provided $349 billion for initial funding to guarantee PPP loans for small businesses through the U.S. Small Business Administration (SBA) that equal up to 250% of a company’s monthly payroll (capped at $10 million), which can be used to cover payroll, mortgages, rent and other specified expenses. The PPP program began on April 3, but the initial amount funded by Congress is insufficient to address the large numbers of small businesses taking advantage of the program, hence lawmakers are moving to increase the funding level.

PPP loans offer favorable terms (1% interest rate, no collateral or personal guarantee requirements, no borrower or lender fees, and no payments for six months) and SBA will forgive the portion of the loans used to cover payroll, mortgage interest, rent payments and the cost of utilities for the first eight weeks if small businesses retain their employees and payroll levels.

If your bank is currently not accepting an application, consider working with a local community bank— many of which specialize in working with the SBA. 

For alternative relief, you may want to consider taking advantage of the SBA’s Coronavirus Disaster Loan Program, which provides loans of up to $2 million at 3.75% and is funded directly through the SBA rather than the bank. More importantly, the first $10,000 is a grant (no need to pay back) which will be provided in as few as three days. Further, the disaster loan can be converted into a PPP loan if that becomes available at a later date.

You May Also Like

House Passes Bill to Stop EPA Emissions Mandate

The U.S. House passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support.

tailpipe-emissions

The U.S. House of Representatives passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support (221 to 197), with five Democrats and each Republican member voting for the bill.

If passed into law, the SEMA-supported bill would prohibit the U.S. Environmental Protection Agency (EPA) from finalizing the agency’s proposed federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32, which intends for electric vehicles (EVs) to make up 67% of all new vehicles sales by 2032. The CARS Act also prevents future EPA motor-vehicle emissions regulations that would mandate certain technologies or limit the availability of vehicles based on engine type.

U.S. House Schedules Vote to Stop EPA Emissions Mandate

The SEMA-supported bill would prohibit the EPA from finalizing federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32.

emissions
Section 301 Tariffs & Circumvention: A Closer Look

There’s buzz suggesting that these tariffs are likely here to stay, possibly with even steeper charges on specific items.

Maine Voters Overwhelmingly Back Right to Repair

Over 80% of Mainers voted “yes” to ensure that they and their repair shops can access vehicle diagnostic tools and data.

AAPEX Keynote: Right to Repair Takes Center Stage

While there are headwinds, Congressional support is moving the REPAIR Act forward.

Right to Repair AAPEX

Other Posts

House Subcommittee Votes to Approve REPAIR Act

The REPAIR Act will now go before the full House Energy and Commerce Committee for consideration.

Bendix Responds to Proposed Safety Measures for Heavy Vehicles

The proposed rules call for electronic stability control systems to meet specific equipment and operational requirements.

Auto Care, Industry Groups Ask CT to Protect the Aftermarket

The new section of a Connecticut law could impose potentially anti-competitive requirements on repair facilities.

Tire-shop-tech
McCarthy: The REPAIR Act Builds Momentum

Paul McCarthy, president of MEMA Aftermarket Suppliers, updated members on progress around Right to Repair.

MEMA right to repair mccarthy