CARES Act: Paycheck Protection Program (PPP) Additional Guidance and Additional Funds
Following extensive publicity regarding large and publicly-traded businesses that have received loans under the Paycheck Protection Program (the “PPP”), on April 23, 2020, the Small Business Administration (the “SBA”) added additional guidance with Question 31 to its Frequently Asked Questions (“FAQs”, and Question 31, “FAQ No. 31”). On April 24th, President Trump signed into law a bill approving $484 billion in additional coronavirus relief, of which $310 billion will go toward commitments for general business loans through the PPP ($60 billion of which is specifically allocated to smaller lenders to help inject federal funds into rural areas). Congress also directed $50 billion to the Disaster Loans Program Account, $10 billion to Emergency EIDL Grants, $75 billion to health care providers and $25 billion to coronavirus testing.
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