The Small Business Administration on Monday will start accepting new applications for the Paycheck Protection Program, using more than $300 billion in new funding provided by a coronavirus relief bill President Donald Trump signed into law Friday.
Farmers also are eligible under the bill to start applying for SBA’s Economic Injury Disaster Loan program, which provides $10,000 “emergency advances” that don’t have to paid back, plus low-interest loans for up to $2 million.
The PPP, which provides forgivable loans to businesses, including farms, that use most of the money to rehire or retain workers, has been out of money since last week after SBA committed all of the initial $349 billion Congress provided.
Senate Republican Whip John Thune of South Dakota told Agri-Pulse on Friday that Congress might consider a third round of funding for the program if SBA runs out of money again and “there are still applicants in the pipeline, and they’re eligible and qualified.”
However, he said the Senate would not take up another bill to replenish the account until the full Senate is back in session in May.
The PPP loans are provided through banks and other lenders, including Farm Credit associations, that then submit applications to SBA for approval. Lenders can begin submitting the applications at 10:30 a.m. on Monday.
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“The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans. With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief,” Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said in a joint statement.
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