On April 24, the “Paycheck Protection Program and Health Care Enhancement Act” was signed into law. Referred to as “CARES 2”, the Act provides a second round of federal stimulus funding that appropriates $320 billion to the Paycheck Protection Program (PPP), $50 billion for the Economic Injury Disaster Loan (EIDL) Program, and an additional $10 billion for the EIDL Cash Advance Program.
The U.S. Small Business Administration will begin processing the second round of federal Paycheck Protection Program applications Monday, April 27, 2020. By all accounts it is recommend that businesses that are eligible and that have not yet applied submit their applications ASAP. Like the first round, each participating bank has its own process for handling these applications, so we recommend that you contact the bank that you are currently doing business with for your business to obtain the application and instructions. You can also get this information on-line at your bank’s website. And you may want to contact your accountant for assistance. We have found this to be very helpful to the process.
If you qualify for and then receive a PPP loan, proper record keeping for the use of the funds will be very important and useful at the point in time that loan recipients apply for loan repayment forgiveness for qualified paid expenses.
