The SC Chamber of Commerce released a statement Monday night, April, 20th, informing business owners that US Senate Democrats and Republicans are close to a deal for additional funding for the Paycheck Protection Program (PPP). The package, expected to be passed today in the Senate by unanimous consent, will likely allocate close to $400 billion total including funding for:
- Economic Injury Disaster Loans (EIDL)
- Hospital assistance
- COVID-19 testing
The US House could also take a vote on the package as soon as Wednesday of this week but are expected to come back to Washington for an in-person vote.
To Recap: The PPP was originally passed as part of the Coronavirus Aid, Response, and Economic Security (CARES) Act. The program went into effect on April 3rd and authorized up to $349 billion for job retention and certain other expenses at businesses employing less than 500 people. Small businesses and eligible nonprofit organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards for low-interest loans up to a maximum of $10 million. Part of the loan may be forgiven and not counted as income, as long as the money is spent on certain operating expenses the first eight weeks after the loan originated. The original funds were fully allocated by April 16.
The Small Business Administration (SBA) recently released updated loan approval numbers through 12:00 pm on April 16th.
- Approval of 1,661,367 loans
- Approval of $342.3 billion in loans (does not reflect the amount required for reimbursement to lenders per statute within the CARES Act.
- 4,975 lenders have processed approved loans
- Overall average loan size is $206,000
- Top five sectors receiving loans:
- Construction (13.12%)
- Professional, Scientific, and Technical Services (12.65%)
- Manufacturing (11.96%)
- Health Care and Social Assistance (11.65%)
- Accommodation and Food Services (8.91%)
In South Carolina:
- Approval of 22,933 loans have been approved
- Approval of $3.81 billion in loans
The SC Chamber Team will continue to monitor developments at the federal level and to work with the SBA’s South Carolina District Office and the SC Bankers Association in order to assist members and provide up-to-date information about the evolution of the PPP.