Quick update today…
As you may recall, several weeks ago Congress passed the CARES Act, which made financial relief packages available to small businesses. These included the Paycheck Protection Program and the Economic Injury Disaster Program.
Given the far-reaching economic impact of COVID-19, it was not especially surprising when the funds allotted for these programs were exhausted fairly quickly. In an effort to provide further support to small businesses, Congress has now approved an additional $310 billion to fund the Paycheck Protection Program and $60 billion for the Economic Injury Disaster Program. While the new legislation has not yet been signed by the President, this is expected to occur today or tomorrow.
These are both valuable programs, with favorable loan terms and the potential for substantial loan forgiveness. These programs are administered through the Small Business Administration. The SBA’s website (www.sba.gov) is not yet accepting new applications since the new funding is not officially in place, but this should change quickly upon the President’s signature. If you have not applied for these programs, this opportunity should be available shortly. Similarly, if you have previously applied for a loan but did not receive approval due to a lack of funding, you may want to request a status update from your lender.
One other note for those of you with construction-related interests: Last night, the Governor announced that public and private residential and non-residential construction may resume statewide starting Friday, May 1 in accordance with safety guidance that will be issued by the administration shortly. The date was moved up from a previously announced date of May 8. The Governor also announced general parameters for reopening businesses generally, but no specific dates were provided.
Please feel free to get in touch if you have any questions. Stay safe, everyone!
John L. Senft, Esquire