April 24, 2020: What You Need to Know About the Latest PPP Funding

Gusto Editors

April 24, 2020

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Money in your pocket

Today, President Trump signed a new coronavirus relief bill that provides additional funding for both the Paycheck Protection Program (PPP) and the Small Business Administration (SBA)’s Economic Injury Disaster Loans (EIDL). Here’s what’s most important for small businesses to know:

  • The PPP received another $320 billion in funds. 
  • EIDL received $60 billion, with $10 billion for one-time grants of $10,000, and $50 billion for actual loans. 
  • You don’t need to resubmit your applications if you’ve already sent them in to your bank or lender. If you haven’t heard about the status of your application, we recommend contacting your lender before reapplying.
  • There have been no changes to the application processes for either loan.
  • Community banks will get $60 billion. So if you’re a customer of a regional or community bank and you’ve been told that your bank is out of money, you’ll want to check with them to see if that’s changed. 
  • Most importantly, if you haven’t already applied, we still recommend you do so.  

PPP vs EIDL

Speaking of applying, we often get questions about which of the loan programs businesses should apply for. As a general rule, a business can apply to both PPP and EIDL (as long as the funds aren’t used on the same expenses in the same time period). And, since PPP funds can be fully forgivable if 75% or more is used on payroll, we recommend using the EIDL program for business or personnel-related expenses such as: 

  • Fringe benefits, like commuter benefits
  • Benefits not covered under group health plans, such as HSAs
  • Covering payroll expenses for employees (or yourself) if wages are in excess of $100,000
  • Additional business expenses, such as shipping costs, inventory, supplies, etc. 

The EIDL program includes a cash advance of up to $10,000 (forgivable if used on qualifying expenses) that should be received within three days. The SBA has been limiting the grant to $1,000 per employee, but it’s still a great option if you need money in the immediate term. 

It’s worth noting, though, that you can only receive the grant if you’re also applying for an EIDL loan (the latest we heard is that the SBA is only issuing unsecured loan applications of $25,000 or less).

Everything you need to know about applications

Loan application processes can be long and cumbersome. We’ve tried to break them all down for you:

Private funding

PSA: Federal loans and grants aren’t the only way to get financial relief as a small business owner. We’ve been compiling all private and state funding options. Here are some of our top picks:

  • Goldman Sachs 10,000 Small Business Relief Fund 
    • $300 million effort to aid small businesses and communities suffering through the coronavirus crisis. 
    • Apply here
  • Facebook Small Business Grants Program 
    • $100 million in cash grants and ad credits for up to 30,000 eligible small businesses.
    • Apply here
  • Salesforce and Ureeka Small Business Grants
    • $10,000 in grants to eligible small businesses.
    • Apply here

On our radar:

Want more small business news and resources? Check out past editions in our archive.

Gusto Editors Gusto Editors, contributing authors on Gusto, provide actionable tips and expert advice on HR and payroll for successful business management.
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