With the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act having launched just over a week ago, the $350 billion allocated for the Paycheck Protection Program (PPP) is expected to run dry in the coming days.
We encourage RV businesses to continue to apply for the loans, even if the program runs out of funding, as we’re optimistic that the Congress will put additional funds into the Small Business Administration (SBA) 7a Paycheck Protection Program where applicants should be in the que if funds are needed.
Axios, in a recent article, outlines the main touch points of what you need to know about this stimulus:
WHY IT MATTERS
This is a sign that more than 1.3 million small businesses (and some larger ones) will eventually get desperately needed cash. It's also a sign that way more might be needed.
- Paycheck Protection Program loans are forgivable if used for payroll and rent and similar expenses, and they're designed to keep otherwise healthy businesses afloat during this crisis.
The Small Business Administration reports more than 1.4 million loan approvals totaling more than $305 billion.
- The $349 billion funding cap is expected to be hit Wednesday, multiple media outlets say.
THE BIG PICTURE
In roughly a month, coronavirus lockdowns have...
- Caused 1 in 10 working-age Americans to file for unemployment.
- Put historic pressure on businesses not initially affected by the lockdown, with a second wave of layoffs hitting nationwide. (WSJ)
Treasury Secretary Steven Mnuchin and Speaker Nancy Pelosi spoke Wednesday about more cash for the program, WSJ notes.
- Both parties generally agree on $250 billion, but Democrats want extra cash for "hospitals, food assistance and state and local governments," while Republicans want to keep the focus purely on small businesses.