Source: Clean Energy Business Network, April 27, 2020
We wanted to make sure you were aware of several updates impacting small businesses in light of recent congressional action. CEBN has updated its COVID-19 Small Business Resource Center to reflect new developments, and a summary of key updates are below:
1. Paycheck Protection Program Reopens: The Paycheck Protection Program reopened this morning with an injection of $310 billion in funding from Congress. Changes to program implementation are outlined below. A list of SBA approved lenders can be accessed here.
- Carve out for specific lending institutions: $60 billion in funds have been set aside for Community Development Financial Institutions, Minority Depository Institutions, community banks, credit unions and other smaller lenders.
- Limits on lending: No single bank will be permitted to lend more than 10% ($60 billion) of total PPP funds. Larger lenders like Chase have warned applicants that a backlog of existing applicants may exceed this cap. Banks will be limited to a certain number of loan applications per hour to slow the pace of lending.
2. Economic Injury Disaster Loans to resume: SBA has announced it will resume processing existing applications for the EIDL program, which provides $10,000 in grants to small businesses. SBA will announce as soon as possible when new applicants may apply.
3. State and Local Resources: New resources continue to be added to the state and local financial relief database that the Duke School of Business is maintaining.