Continued updates on the status of various financial relief programs for small businesses are provided here including on the PPP and EIDL.
To keep our community informed of the most urgent news related to financial relief programs (including the EIDL, PPP, and other local and state programs), the Workest team will be updating this post with the latest alerts.
Latest developments about the PPP and EIDL
Coronavirus Small Business Financial Relief News for May 4
1:11 p.m. EST: The Small Business Administration announced in a news release that Economic Injury Disaster Loans are now available to U.S. Agricultural Businesses Impacted by COVID-19. The SBA’s EIDL portal will reopen today. Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries, according to the SBA. Eligible businesses must have 500 or fewer employees.
For businesses that have submitted an EIDL loan application, the SBA will process the application without the need for re-applying.
Coronavirus Small Business Financial Relief News for May 1
8:58 a.m. EST: The average overall size of an approved loan during the second phase of the Paycheck Protection Program (PPP) is less than $95,000, according to a district office of the SBA.
The SBA’s Minnesota District Office shared new data on the approved PPP loans as of Wednesday evening. According to an email from that office, 5,300 lenders had loans processed in the second round of the PPP totaling nearly $90 billion.
More on the latest numbers from the second round of the PPP can be found here.
Coronavirus Small Business Financial Relief News for April 29
2:33 p.m. EST: In an attempt to ensure more PPP loans are issued from smaller banks to smaller businesses, the SBA is issuing a freeze on accepting loan applications from lenders with more than $1 billion in assets today between 4 p.m. and 11:59 p.m. EST.
During that period of time the SBA will only accept loans from lenders with less than $1 billion in assets, locking out some of the biggest and mid-size banks and lending institutions from the program. The SBA noted that it will accept loans from larger banks prior to that period and again tomorrow. After, it will reevaluate whether to institute another period for just smaller lenders in the future.
Bank of America, on the country’s largest banks, said yesterday it had sent 184,000 applications to the SBA during the second round of the PPP.
Coronavirus Small Business Financial Relief News for April 28
9:14 p.m. EST: The Small Business Administration (SBA) said that it has approved more than $52 billion in loans as part of the second round of the Paycheck Protection Program (PPP) between April 27 and April 28 as of 1 p.m. EST.
A total of 475,952 loans had been approved worth $52,175,662,296, an SBA spokesperson confirmed. A total of 5,182 lenders have participated in the second round of funding, the SBA said.
For more on the second round of the PPP, including the average loan size, go here.
8:14 p.m. EST: Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza issued a joint statement saying they will review all loans in excess of $2 million.
“We have noted the large number of companies that have appropriately reevaluated their need for PPP loans and promptly repaid loan funds in response to SBA guidance reminding all borrowers of an important certification required to obtain a PPP loan,” the statement said.
This is in response from the criticism of large, publicly-traded companies receiving millions of dollars in PPP loans. More than 220 public companies applied for at least $870 million, according to CNBC.
AutoNation received a $77 million loan, which the company will return.
Regulatory guidelines will be forthcoming.
12:43 p.m. EST: U.S. Treasury Secretary Steven Mnuchin said Tuesday companies that received more than $2 million emergency coronavirus relief loans would be audited by the Small Business Administration, according to The New York Times.
The public outcry over publicly-traded companies receiving millions of dollars in emergency loans has dominated headlines the past 2 weeks. The Los Angeles Lakers is the latest company to return PPP money.
“I’m not a big fan of the fact that they took a $4.6 million,” Mnuchin told CNBC. “I think that’s outrageous.”
Mnuchin also said other public companies who accepted emergency loans, when they weren’t eligible to receive them, could face criminal liability if they did not refund the loans by May 7.
Coronavirus Small Business Financial Relief News for April 27
9:44 a.m. EST: The Small Business Administration resumes processing applications for the Paycheck Protection Program (PPP) today at 10:30 a.m. EST.
The initial $349 billion in funding for the PPP was quickly exhausted as businesses rushed to secure the forgivable loans. Last week, another $321 billion in funds was signed in to law to replenish the program.
Coronavirus Small Business Financial Relief News for April 24
5:14 p.m. EST: The Small Business Administration said it will resume accepting PPP loan applications on Monday, April 27, at 10:30AM EDT from approved lenders on behalf of any eligible borrower, according to a news release from the Small Business Administration. The SBA is working on updating its system so it can properly code applications in accordance to the new changes in law.
12:49 p.m. EST: President Trump has signed the $484 billion coronavirus relief bill into law, which Congress passed earlier this week. The law includes:
- $321 billion for the Paycheck Protection Program
- $60 billion for the Economic Injury Disaster Loan program
- $75 billion for hospitals
- $25 billion for coronavirus testing
Coronavirus Small Business Financial Relief News for April 23
6:21 p.m. EST: The House of Representatives overwhelmingly passed the $484 billion coronavirus relief bill, which will replenish funding for small business loans and earmark funds for hospitals and expanded medical testing. President Trump is expected to quickly sign the bill into law. This is the fourth coronavirus bill to move through Congress.
2:13 p.m. EST: The House of Representatives is expected to pass the latest coronavirus relief bill Thursday. The nearly $500 billion bill includes money for the Paycheck Protection Program, Economic Injury Disaster Loans, plus funding for testing and hospitals.
Coronavirus Small Business Financial Relief News for April 21
5:58 p.m. EST: The Senate has passed another coronavirus relief bill to help small businesses, which would replenish founds in the Paycheck Protection Program (PPP). The bill moves to the House of Representatives, where members will vote for its passage on Thursday. President Trump is urging the House to pass the bill, so he can sign it into law. Read the full story here.
3:42 p.m. EST: The Trump Administration and Congress have reached a tentative deal to replenish the Paycheck Protection Program. The bipartisan deal includes $322 billion for the PPP, plus $60 billion for emergency disaster loans, $75 billion for hospitals, and $25 billion for testing, according to NPR. The Senate hopes to pass the pill during a 4 p.m. pro forma session. Meanwhile, members of the House of Representatives could vote on the bill as early as Thursday.
10:22 a.m. EST: Senate Minority Leader Chuck Schumer said a deal on aid for small businesses has been struck with Senate Republicans and could pass in the Senate as early as today, according to The Wall Street Journal (subscription required).
The legislation would likely send $310 billion into the Paycheck Protection Program (PPP), which exhausted its original $349 billion in funding last week. According to The Wall Street Journal, the bill would also earmark $60 billion in the PPP specifically for businesses that have struggled to get funding under the program because they didn’t have prior relationships with traditional lenders.
The legislation reportedly also includes another $60 billion for the SBA’s Economic Injury Disaster Loan (EIDL) program, which also stalled last week due to demand.
Coronavirus Small Business Financial Relief News for April 20
8:15 a.m. EST: Congress is closer to a new coronavirus stimulus package that includes more funds for the Paycheck Protection Program (PPP).
The package currently being negotiated includes an additional $310 billion for PPP loans for small businesses, according to reports.
The initial $349 billion in funding for the PPP ran out on April 15.
The package reportedly also includes another $60 billion for the SBA’s Economic Injury Disaster Loans (EIDL).
The deal could pass Congress as soon as this week.
Coronavirus Small Business Financial Relief News for April 16
2:31 p.m. EST: The SBA provided an update on where approved loans were distributed by size, state and industry. 74% of the loans were for under $150,000. The average loan amount was $206,000.
Nearly 20% of the amount approved was processed by lenders with less than $1 billion in assets, and approximately 60% of the loans were approved by banks with $10 billion of assets or less, according to the SBA.
Go here for a breakdown of PPP loans by state and industry.
Coronavirus Small Business Financial Relief News for April 16
11:24 a.m. EST: The PPP is officially maxed out, according to the Small Business Administration (SBA).
“SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” the SBA website stated. Full text:
SBA EIDL Notice: Lapse in Appropriations
“SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”
The program was established with $349 billion in funding through the CARES Act passed in March. Despite a confusing rollout of the program, businesses across the country rushed to file applications but ran into technical glitches, confusing directions, and the inability to find banks participating in the program.
Congress is considering up to $250 billion in additional funding for the PPP, but remains deadlocked.
The SBA did note that the Economic Injury Disaster Loan program, which had $50 billion in funding at its launch in early March, continues to process existing applications but not accepting new applications.
8:49 p.m. EST: Many franchises are finding they are locked out of funds approved or administered by the SBA. The SBA will only approve franchisees that are included on their national franchise directory, according to a report in The Wall Street Journal (subscription required).
Many of the franchisees unable to access the fund operate under a tiered model, in which franchiser typically sells regional rights to franchisees, which then sell local units, The Wall Street Journal reported.
Many franchises have sent a letter U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza imploring them to loosen restrictions so they can access SBA-administered funds such as the EIDL and PPP loans.
Coronavirus Small Business Financial Relief News for April 15
8:50 p.m. EST: U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza issued a joint statement warning that funds for the Paycheck Protection Program (PPP) is depleting.
Both administrators said the SBA will no longer be able to approve the forgivable loans for small businesses once the initial $349 billion funding runs out. As of today at 5 p.m. EST, only $41 billion was left that hadn’t already been approved.
“The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time,” the statement says. “By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations.”
The statement doesn’t provide a timeline for when the Treasury Department or the SBA expects the funds to dry up.
“We urge Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks,” the statement reads.
5:21 p.m. EST: The Small Business Administration has approved $308 billion in Paycheck Protection Program loans as of April 15. As of 5 p.m. EST, 1,422,000 PPP loans have been approved and more than 4,900 lenders are participating.
The new approved amounts as of April 15 heighten concerns that the funding for PPP is running out. Yesterday, the SBA stated that the total approved amount of loans under the program was $268 billion out of the earmarked $349 billion available. That means $40 billion in loans were approved in 24 hours.
Many small businesses around the country are still trying to get applications approved. President Donald J. Trump and Senate Republicans stated the need for additional legislation to increase the fund by another $250 billion. That measure was blocked, however, by Democrats in Congress who want to secure additional funds for hospitals and local governments as part of the stimulus.
We will be updating this story as it develops.
Coronavirus Small Business Financial Relief News for April 14
Over three-fourths of the $349 billion dedicated for loans to businesses under the Paycheck Protection Program (PPP) have been approved as of April 14.
The Small Business Administration, which oversees the PPP with the U.S. Treasury Department, said that $268 billion in forgivable loans had been approved as of April 14. A total of 1,680,000 loans have been approved under the program and originated by 4,700 lenders nationwide, according to an SBA spokesperson.
The SBA did not have exact figures for how much in the approved loans had actually been disbursed to businesses as of April 14.
The PPP was included as part of the CARES Act by Congress in an attempt to provide much needed financial relief to small businesses facing shutdowns and steep drops in revenue due to the COVID-19 pandemic. The intention of the program was to provide roughly 2 months of funds to businesses to cover payroll, and mitigate the numbers of newly unemployed workers.
Under the terms of the Paycheck Protection Program, eligible businesses can apply for 2.5 times their monthly payroll with a hard cap of $100,000 per employee. If the business uses at least 75% of the loan to cover payroll and maintain employee salaries, the loan can be partially or totally forgiven.
Applications for the program officially opened on April 3. But communication struggles between lenders and the Federal government, as well as technical glitches, led to confusion and frustration among small businesses. A lack of information around the program sparked makeshift online communities and tracking projects by the small businesses themselves.