By Frank J. Godfrey III
Dear valued clients and colleagues,
As many of you know, the Federal Paycheck Protection Program (PPP) ran out of funds less than two weeks after its initial implementation. This left many companies, largely those without a substantial banking relationship with larger institutions, unable to receive much-needed capital during this time of economic need. Thus, the house and senate have been working on an amendment to the PPP, to infuse additional capital and to direct funds to smaller entities.
The new legislation, which went into effect this past Monday the 27th, has added an additional $310 billion to the PPP program. Of these funds, $30 billion have been allocated for lending by insured depository institutions, credit unions, and community financial institutions with assets less than $50 billion dollars. The hope is that by allocating these funds to smaller financial institutions, the money will filter to smaller businesses. The act also allocates an additional $50 billion to the disaster loan program under the SBA to help with direct loans to businesses who are harmed as a result of the declared state of emergency.
Any client who has questions about the program should reach out to this office at their earliest convenience and consider applying for the program immediately. In the meantime, the banks and SBA are working together to process the loans already in their queue.
As always, if you have additional questions on this matter or any other, especially in relation to the COVID-19 crisis, please reach out to us at any time. You can email us at firstname.lastname@example.org or give us a call at (503) 646-0566.
With our sincere best wishes,
Your legal team at Moomaw Mesirow & Godfrey, LLP