Note: This guidance was sent as a client alert on June 19, 2020 and the information is current as of that date.
EIDL Program Update
The Treasury Department announced that the EIDL program would resume taking applications for small businesses. Since the program has reopened the application process, we have created a blog post detailing the EIDL program and how it could be used for your business.
Paycheck Protection Program – Forgiveness Update
The Small Business Administration released a revised loan forgiveness application for the Paycheck Protection Program (PPP) on June 17th. Additionally, they also debuted a new EZ application for forgiveness of PPP loans that can be used by certain borrowers. We have detailed the new applications in an updated PPP forgiveness blog.
Paycheck Protection Program – Second Round Proposed
The legislation introduced on June 18th is called Prioritized Paycheck Protection Program (P4) Act. It would allow businesses with fewer than 100 employees to apply for a second loan if they have used or are on pace to expend their first PPP loan. They would also be required to verify a 50% loss in revenue due to the COVID-19 pandemic and that additional funds were needed for payroll plus other operating costs.