Newsletter: More Funding for Small Businesses, Hospitals, and Testing
Yesterday, the US Senate unanimously passed the Paycheck Protection Program and Health Care Enhancement Act, a $480 Billion interim funding bill to support small businesses, hospitals and nationwide COVID testing. The House will vote this legislation tomorrow, and it is expected that the President will sign it soon thereafter. In advance of the House vote, I'm writing with an update on what is included in this package, and guidance for small businesses and other organizations looking to access this funding.
With 80 percent of our nation's small business in limbo, this additional funding is welcome news. While the wait was painful and unnecessary, I am grateful that we were able to increase Paycheck Protection Program (PPP) funding by $60 billion over what President Trump and Senate Republicans sought to a total of $310 billion. I am equally grateful that we were able to equip the Economic Impact Disaster Loan (EIDL) program to offer more than $300 billion in additional loans. Furthermore, we provided $75 billion for our hospitals and health workers on the front lines and an additional $25 billion toward nationwide testing.
The stories of large, publicly-traded companies who were able to jump the line and take funds intended for small Main Street businesses are completely unacceptable. The Administration must do a more effective, more transparent job distributing this second round of funding to those most in need. I will continue to work with my colleagues on both sides of the aisle, including on the Small Business Committee, to hold the SBA and Trump Administration accountable for delivering the relief as Congress intended.
Our office is strongly encouraging small businesses, nonprofits, faith-based organizations and other eligible entities to prepare all appropriate documentation so that, if you have not already done so, you are ready to apply for the Paycheck Protection Program as soon as it reopens. Funds are expected to again go quickly, and interested applicants should contact their lender to ensure they are prepared to take full advantage of the opportunity.
Paycheck Protection Program (PPP):
If you applied for the Paycheck Protection Program (PPP) and have not received a confirmation email from your lender, you should follow up with your lender for a status update.
- Contact your lender to see if you need to resubmit your PPP application
- For general questions you can contact the SBA PPP dedicated line at 1-833-572-0502.
If you are having difficult accessing the PPP with your lender, you can find a list of all eligible lenders based on your zip code here. Additionally, certain online lenders like PayPal are accepting PPP applications.
Additional Funds and Fixes to the Paycheck Protection Program (PPP):
The Paycheck Protection Program and Health Care Enhancement Act strengthens the PPP by prioritizing America's smallest businesses, including minority, women, veteran, and rural businesses by:
- Increasing the appropriation level for the Paycheck Protection Program from $349 billion to $670 billion;
- This section also adds $310 billion for loans and an additional $11 billion for administrative fees;
- Directing $60 billion be distributed through Insured Depository Institutions, Credit Unions, and Community Financial Institutions for the Paycheck Protection Program;
- Directing $60 billion be distributed through Community Financial Institutions, defined as Community Development Financial Institutions (CDFIs), minority depository institutions (MDIs), certified development companies, microloan intermediaries, and State or Federal Credit Unions. The amounts are split:
- Directing $60 billion be distributed through Community Financial Institutions, defined as Community Development Financial Institutions (CDFIs), minority depository institutions (MDIs), certified development companies, microloan intermediaries, and State or Federal Credit Unions. The amounts are split;
- $30 billion for banks and credit unions, including minority depository institutions (MDIs), with more than $10 billion in assets but less than $50 billion in assets that are PPP lenders; and
- $30 billion for banks and credit unions with less than $10 billion in assets, as well as all Community Development Financial Institutions (CDFIs), MDIs, certified development companies (CDCs), and microlenders that are PPP lenders.
- This set-aside does not prohibit these community lenders to access additional PPP funds available to all lenders.
Additional Economic Injury Disaster Loans (EIDL):
The interim bill will provide for more than $300 billion for additional Economic Injury Disaster Loans. Please note the SBA is not currently accepting new EIDL applications, but will restart application processing once this interim bill is signed into law. Submitted applications will be considered in the order in which they were received. It is taking up to 30 calendar days for processing applications. You can contact the SBA at SBA Customer Service Center at 1-800-659-2955 or disastercustomerservice@sba.gov .
Status of SBA Assistance in Illinois:
Below are the latest figures we have received from the SBA on assistance to small businesses in Illinois.
Paycheck Protection Program in Illinois as of 4/16/2020
- 69,893 approved loans
- $15,972,578,071 total borrowed
SBA Emergency Injury Disaster Loan (EIDL) in Illinois as of 4/19/2020
- 793 approved loans
- $168,341,900 total
Emergency Injury Disaster Loan Advances (EIDLA) in Illinois as of 4/19/2020
- 27,550 approved loans
- $123,101,000 total
We will continue to keep you updated with additional details as we have them.
This fight against COVID-19 is far from over, but we can, and will beat back the virus and get through this together.
Stay home, stay healthy, stay strong!
Sincerely,