April 24, 2020

Jared C. Brossett

Additional Funding to the Paycheck Protection Program

Additional Funding to the Paycheck Protection Program
NEW ORLEANS - In the Paycheck Protection Program and Health Care Enhancement Act passed by Congress last night, there are some key improvements and reforms to expand access and assistance to the Paycheck Protection Program. It's important that these funds get to actual small businesses whether they have relationships with large financial institutions or not. The key improvements include:
  • Additional Funding & Reforms to PPP: $310 billion in additional lending authority for PPP with key reforms to expand access to more small businesses and better serve the needs of unbanked and underserved small businesses and nonprofits. This includes: 

  • $60 Billion Set-aside for Small, Mid-size, and Community-Based Lenders: A $60 billion set-aside within PPP for small and mid-sized banks and credit unions as well as community-based lending institutions. Most importantly, this set-aside funding will help ensure that unbanked and underserved businesses can get access to PPP. This includes minority-owned businesses, rural businesses, small mom and pop businesses, and smaller nonprofits that too often have been pushed to the back of the line in the program. The set-aside is broken down as follows: 

  • $30 Billion to Community-Based Lenders: $30 billion will be dedicated to community-based lenders, specifically including Community Development Financial Institutions (CDFIs), Minority Depository Institutions, SBA micro-lenders, and certified development companies/SBA 504 lenders, as well as the smallest credit unions and banks with assets under $10 billion. 
  • $30 Billion to Small & Mid-Sized Lenders: $30 billion will be dedicated to small and mid-sized credit unions and banks with assets between $10 billion and $50 billion.

  • $60 billion for SBA's Economic Injury Disaster Loan (EIDL) and Emergency Economic Injury Disaster Grant program. These emergency programs provide flexible assistance to small businesses to cover operating expenses, including payroll and other costs such as rent and utilities. These programs are facing the same demand as PPP and each has received additional funding. Funding for each program includes: 

  • Additional $50 billion for the Economic Injury Disaster Loan Program; and 
  • Additional $10 billion for the Emergency Economic Injury Disaster Grant Program: $10 billion for the Emergency Economic Injury Disaster Grant Program to provide up to $10,000 as a cash advance to provide immediate relief for operating expenses for small businesses and nonprofits that apply for an EIDL. The cash advance does not have to be paid back. 

  • $2.1 billion in new funding is provided for staff and other expenses to support the SBA's programs assisting small businesses impacted by COVID-19. 

For more information, please click here.


Domonique Dickerson
Chief of Staff
Councilmember Jared C. Brossett, Chair of Budget/Audit/BoR Committee
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