The debate over increased funding for the federal Paycheck Protection Program (PPP) and renewed funding for the Economic Injury Disaster Loan (EIDL) program continues in Washington DC.
President Trump and congressional leaders continued to negotiate on a deal Monday, but the talks are complicated by Democratic demands for $30 billion for a national coronavirus testing program and $150 billion to help state and local governments with COVID-19 related costs and revenue gaps.
The U.S. House has indicated they would vote on additional funding later this week, if a deal is struck. Both sides have already agreed on $300 billion in new money for the PPP, which ran out of funding on April 16. Last week, the Michigan Chamber and over 33 other associations representing Michigan’s business community and financial institutions, asked Michigan’s U.S. Senators and Representatives to work swiftly to provide additional funding for this program.
The first round of PPP funding ran out in just 14 days. PPP allows businesses to pay their employees’ wages and benefits and covers costs like rent and utilities throughout the COVID-19 pandemic. This tool is particularly important because it enables businesses to keep paying workers even if workers cannot work. In Michigan, over 25,000 PPP loans have been approved, totaling over $8.5 billion dollars.
Also on the negotiating table is an additional $50 billion for the Economic Injury Disaster Loan (EIDL) program, which maxed out of initial federal funding as well. The EIDL program is intended to help small businesses cope with the pandemic by allowing them to meet pressing non-payroll expenses and to prepare to rebuild operations. Due to high demand, the Small Business Administration (SBA) began rationing loans to a maximum of $15,000 per applicant, even though the average loan was $200,000.
We will continue to monitor the debate in Congress and advocate for continued financial relief for businesses impacted by COVID-19. Please contact Wendy Block with any questions at wblock@michamber.com.