Apr 24, 2020

US Government Passes Second Round of PPP Funding

The second round of funding for the overwhelmingly popular Paycheck Protection Program (PPP) has arrived. The funding comes as part of a $484 billion “interim” stimulus bill. The interim legislation allocated an additional $310 billion for PPP loans. 

The new bill includes measures to ensure PPP loans have a better shot at reaching the businesses that need them most, setting aside funds for businesses owned by women and minority groups. These measures have been added to address issues that arose during the first round of PPP loans. Many smaller businesses were left out in the cold, unable to find a lender before funding was exhausted, while larger companies at big banks easily secured large sums under the program (some of which have already taken measures to return the funds they received through the program).

The PPP was created under the CARES Act with an initial budget of $350 billion. Before the bill had even passed, economists warned that the $350 billion wouldn’t be enough to provide loans to all the small businesses that needed assistance. That turned out to be the case. It wasn’t even close to enough money, and funds dried up within 2 weeks of the SBA opening applications. After the first round, only 1.6 million of the US 30.2 million small businesses had secured loans through the program. 

 

While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.

About the author

Mary Kate Miller
Mary Kate Miller
Mary Kate Miller is a writer based in Chicago, IL. She specializes in covering finance (personal and business), investing, and real estate. Her mission in life is to give readers the confidence and the knowledge needed to grow their wealth by making financial topics more accessible. When she's not writing about topics like business loans, you can find her playing armchair financial advisor to the Real Housewives.

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