Policy Alert: CARES Act Expansion Bill to Revitalize PPP and EIDL Loans
On Thursday, April 23, Congress passed a bill with $484 billion in additional funding to revitalize the CARES Act. This includes $310 billion in new spending for the Paycheck Protection Program (PPP) and $50 billion for Economic Injury Disaster Loans (EIDL). “Phase 3.5” of the CARES Act, or the Interim CARES Act, is expected to be signed into law on Friday, April 24.
New PPP & EIDL Funding
- Paycheck Protection Program: $310 billion in new funding for PPP
- There is a designation of $60 billion for small lenders, with an extended provision that $30 billion of that money will go to community development financial institutions (CDFIs). These institutions can ensure more funding access to smaller organizations that may not have strong bank relationships.
- Small lenders are defined as those with less than $10 billion in assets.
- Economic Injury Disaster Loan: $50 billion in new funding for EIDL
- The bill also increases the EIDL grants program by $10 billion.
- An additional $75 billion will go to hospitals and $25 billion for testing. This money will be split between the states and federal government.
SBA Loan Application ResourcesIf you have already submitted an application, but were not approved before federal funds depleted on April 16, please contact your lender to discuss the status of your application.
- IFF: A Community Development Financial Institution (CDFI) serving the Midwest, IFF has partnered with SBA-qualified lender CFA/USA. IFF is a Nonprofit Connect member. Nonprofit organizations in Missouri and Kansas are able to apply for a PPP loan through IFF.
- Free Webinar: Paycheck Protection Program (PPP) – What it is and how it works
- Monday, April 27 at Noon
- Learn more and RSVP.
- PPP & SBA Frequently Asked Questions: Visit our Coronavirus Resources for Kansas City Nonprofits page and scroll down to the SBA Loans dropdowns.
New ProgramThe Main Street Lending Program: $600 billion in loans to mid-size entities. This program is through the Federal Reserve Board, authorized by the CARES Act. Nonprofits will likely be eligible to apply.
- Loans are expected to be between $1 million and $25 million, available to organizations of up to 10,000 employees. They are to be based on a yearly-adjusted income of the last four years, meaning a yearly income of $250,000 would qualify.
- The expected interest rate is 2-4%.
Share Your Experience: Kansas City Nonprofits & SBA LoansNonprofit Connect is collecting data from Kansas City nonprofits about their experience applying for SBA Loans. The results will help us inform funders and policy makers about the effectiveness of this federal assistance. Please take 3-minutes to complete our survey.
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