The Small Business Administration (SBA) announced last week that it ran out of funding for its Paycheck Protection Program. In response, Congress quickly amended the CARES Act to provide additional funds and expand several of the Act’s programs and President Trump signed the amendment into law Apr. 24.
As we are all aware, the Small Business Administration (SBA) announced last week that it had run out of funds for the Paycheck Protection Program (PPP). However, Congress enacted emergency legislation this week to provide additional funds for the CARES Act and further expand several of the Act’s programs. Specifically, Congress amended the CARES Act’s Emergency Economic Injury Disaster Loan (EIDL) Grants provisions by adding a sixth qualifying business
Furthermore, the PPP received an increase in funding from $349 billion to $659 billion. Businesses that anticipate needing a PPP loan should submit their applications to the SBA as soon as possible before the funds are exhausted, especially since hundreds of millions of dollars of the initial PPP emergency funding were claimed by large, publicly traded companies, according to new research published by Morgan Stanley.
In fact, the U.S. government has allocated at least $243.4 million of the total $349 billion to publicly traded companies, the firm said.
The PPP was designed to help the nation’s smallest, mom-and-pop shops keep employees on payroll and prevent mass layoffs across the country amid the coronavirus pandemic.
But the research shows that several of the companies that have received aid have market values well in excess of $100 million, including DMC Global ($405 million), Wave Life Sciences ($286 million) and Fiesta Restaurant Group ($189 million). Fiesta, which employs more than 10,000 people, according to its last reported annual number, received a PPP loan of $10 million, Morgan Stanley’s data showed.