Senate approves replenishment of business relief programs
NLBMDA urges dealers to talk to lenders as soon as possible.
The Senate has approved legislation that will replenish funding for small business loans, including the Paycheck Protection Program (PPP).
The $484 billion relief package provides:
- 310 billion cash infusion for PPP,
- $50 billion for Economic Injury Disaster Loans (EIDL),
- $10 billion for EIDL grants,
- $25 billion for testing,
- $75 billion for hospitals.
The National Lumber and Building Material Dealers Association (NLBMDA) has been lobbying Congress in recent weeks for an additional cash infusion that will ensure access for dealers in need of relief programs.
Following the April 21 move by the Senate, the House of Representatives is expected to take action on the package on April 23. Once approved, the bill will be sent to President Trump.
The NLBMDA said dealers who are interested in applying for the programs should talk to their lenders as soon as possible.
The National Association of Home Builders (NAHB) has also pushed for additional loan funding.
“The additional $380 billion in new small-business funding approved by the Senate is a welcome development for the thousands of home building firms that desperately need this important government program,” said NAHB Chairman Dean Mon. “Many of these companies are stuck in limbo waiting for this additional funding. As Congress develops the next economic package, it needs to take additional steps to ensure broader builder eligibility under the Paycheck Protection Program.”
Businesses applying for an EIDL may request an advance of up to $10,000 to be delivered within three days of the request. An applicant will not be required to repay this advance if the funds are used to cover payroll, provide sick leave or cover other business costs, even if the applicant is subsequently denied a loan under the EIDL program.
Under the PPP loan program, small businesses with fewer than 500 employees can take out loans equal to 2.5 times their average monthly payroll from 2019 with the total capped at $10 million. For many businesses that meet key conditions on the use of these funds, the loans may be forgiven.
Additional information about the loan programs from the NAHB can be found here.
“Providing sufficient access to the PPP will allow builders to keep their doors open, keep their employees on the job and continue to provide housing opportunities for all Americans during this challenging time,” Mon said.
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