April 21, 2020
The Senate just passed an act to replenish funding for the Small Business Administration's Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. The House still needs to vote on the bill.
Although the final details of the package are not yet announced, more than $450 billion could be made available to provide roughly $300 billion in PPP funding and $50 billion for the EIDL.
Senate Democratic Leader Charles Schumer (N.Y.) claims that $125 billion of the PPP money will be set aside for “under-banked” small businesses that don’t have strong relationships with local banks, such as small restaurants and hair salons.
If you previously applied for a PPP loan, your bank should still have your information. It is advisable to check with them to be sure. Only one loan application per business can be authorized through the SBA's electronic system, E-Tran . After that, any other applications that use the same employer identification number, even from different banks, will essentially bounce back.
Click here
for the PPP loan application.
Once approved, the lender has up to 10 calendar days to start disbursing the money. Lenders may choose to disburse the entire amount all at once or in portions over the course of the loan period.
We will share more details as they become available. Please visit our
COVID-19 Resource Page
for more updates.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
