Back to Learning Center
Subscribe
Join 40,000+ sales and marketing pros who receive our weekly insights, tips, and best practices.
Thank you! You have been subscribed.
Learning Center
Learning Center
Close
The IMPACT Learning Center

Free resources to help you master inbound marketing and They Ask, You Answer

Access the Learning Center

Access the Learning Center

Access the Learning Center
learning_center_grey__What is They Ask, You Answer-v2-black

What is They Ask, You Answer

What is <span>They Ask, You Answer</span>
Articles, Podcasts, & Updates

Articles, Podcasts, & Updates

Articles, Podcasts, <span>& Updates</span>
Free Courses & Certifications

Free Courses & Certifications

Free Courses & <span>Certifications</span>
On-Demand Keynotes & Sessions

On-Demand Keynotes & Sessions

On-Demand <span>Keynotes & Sessions</span>
Events
Events
Close
IMPACT+ Membership
IMPACT+ Membership
Close
Services
Services
Close
Navigation_8_2021_taya

They Ask, You Answer Coaching & Training

They Ask, You Answer Coaching & Training
They Ask, You Answer Workshop

They Ask, You Answer Workshop

They Ask, You Answer Workshop
Navigation_8_2021_workshop

Inbound Marketing Services

Inbound Marketing Services
Navigation_8_2021_website design - monitor

Website Design & Development

Website Design & Development
Navigation_8_2021_hubspot implementation

HubSpot Training & Implementation

HubSpot Training & Implementation
Navigation_8_2021_virtual selling

Virtual Sales
Training

Virtual Sales <br>Training
Navigation_8_2021_swell - paid ads

Paid Search & Social Services

Paid Search & Social Services
Become a Certified Coach
Become a Certified Coach
Close
News

Congress: More Paycheck Protection Program funds with new coronavirus (COVID-19) stimulus bill

By John Becker

Congress: More Paycheck Protection Program funds with new coronavirus (COVID-19) stimulus bill Blog Feature

Update Friday, April 24, 2020: Both the U.S. Senate and House of Representatives have now passed this new stimulus bill, and it has been signed into law.

Per the Washington Post

"The legislation, approved 388-5, would restart a small-business loan program that was swamped by demand and allocate more money for health-care providers and virus testing. The vote was historic, as many lawmakers wore masks on the House floor, some even speaking through face coverings as they delivered impassioned remarks."

What follows is more information about what was planned for this package, as well as links to our resources for businesses looking to use the Paycheck Protection Program and other opportunities afforded by this and and the previous stimulus bill.

As soon as the CARES Act (or Coronavirus Aid, Relief, and Economic Security Act) rolled out last month, there was already clamor suggesting that it would not do enough to mitigate the economic impact of coronavirus.

At the center of this historic legislation was $349 billion in small business economic relief called the Paycheck Protection Program (PPP) that offered forgivable federal loans to help businesses keep their workers employed over the next eight weeks

Within two weeks, the PPP was out of money, and many SMBs that applied were left with nothing to show for their efforts.

According to the National Small Business Association, 52% of small businesses with over 20 employees were approved for a PPP loan, but just 18% of businesses with fewer than 10 employees received approval. 

All in all, the Small Business Administration has approved about 1.6 million PPP loans thus far, but hundreds of thousands of applications hang in the balance.

Thus, the federal government began looking to replenish the funds.

Now, after passing the senate earlier in the week, a new stimulus bill awaits a house vote.

coronavirus-aid-billThe House debate on Thursday, courtesy of C-SPAN

President Trump has already made it clear that he will sign the legislation into law once it passes Congress.

What's in the new legislation?

Congress is allotting an additional $310 billion in PPP funding (in addition to roughly $174 billion in other relief funding).

As before, the application process still must go through an SBA-approved lender. Here is a full explanation of necessary paperwork and application materials.

Businesses can apply for an amount equivalent to 250% of their average monthly payroll costs — up to $10 million. 

However, experts are predicting that this new funding may go quickly as well, so speak with your bank as soon as possible. 

Do small banks offer you a better shot at PPP funds?

Earlier this week, four of America's largest banks were sued by a collection of SMBs from California, alleging that they had prioritized larger companies' PPP applications because these meant more revenue for the banks. 

Bank of America, Wells Fargo, US Bank, and JP Morgan Chase allegedly did not follow a first come, first served model when administering PPP funds.

Lawsuits notwithstanding, you might just be better off applying with a smaller bank.

According to Crain's New York Business: "Here’s a tip for small businesses looking for a Paycheck Protection Program loan: You’ll probably have better luck applying at a small bank—maybe a really small bank." 

"Banks with less than $1 billion in assets processed almost 20% of PPP loans, according to a report this week by Keefe Bruyette & Woods, even though the tiny institutions hold only 6% of the banking system’s total assets." - Aaron Elstein, Senior reporter, Crain's New York Business

According to Duncan Davidson from Bullpen Capital, "The bigger the bank, the worse the application experience." He advises that "you could get approved faster through...SBA-lenders or community banks."

However, you should not apply to multiple banks at the same time. This could compromise your chance for approval.

The average PPP loan issued thus far is around $240,000. For such relatively small loans, a smaller bank might make the most sense, as they are less likely to cater to larger clients. 

The scope of the problem

With millions of businesses and tens of millions of workers affected, another $310 billion can only go so far. 

According to the Federal Small Business Administration, there are over 30 million small businesses in the US, employing nearly 60 million workers. In the face of such numbers, $660 billion starts to look smaller and smaller

The demand for PPP funds is sure to remain sky high, so immediate, judicious action is the best way forward. 

Topics:

News
Finances
coronavirus
Published on April 23, 2020

Recent Articles

Drift report on pandemic fallout reveals seismic shift in marketing strategy

By Paul D. Grant on September 9, 2021
2 min read

Google shares new tools to audit website user experience

By Paul D. Grant on August 12, 2021
3 min read

Google: Website content quality more important than quantity

By Paul D. Grant on August 10, 2021
3 min read

New HubSpot CMS Hub starter tier released for growing businesses

By Paul D. Grant on August 6, 2021
4 min read

Why most marketing 'news' doesn't matter to inbound marketers

By Liz Moorehead on August 3, 2021
4 min read

Gartner: Slashed 2021 marketing budgets increases in-house ownership

By Liz Moorehead on July 30, 2021
6 min read

ICYMI: Digital marketing news update for July 26, 2021

By Liz Moorehead on July 26, 2021
6 min read

How to optimize videos on your business website for search

By Liz Moorehead on July 23, 2021
4 min read

Data: 'Funny' seniors imagery is not only demeaning, it's inaccurate

By Liz Moorehead on July 21, 2021
4 min read

ICYMI: Digital marketing news update for July 19, 2021

By Liz Moorehead on July 19, 2021
6 min read

Google: 'Here's how to prepare for the future private web'

By Liz Moorehead on July 16, 2021
4 min read

How Facebook's news feed algorithm works and prioritizes content

By Liz Moorehead on July 14, 2021
4 min read

ICYMI: Digital marketing news update for July 12, 2021

By Liz Moorehead on July 12, 2021
5 min read

Too many internal links in content can confuse Google about site structure

By Liz Moorehead on July 9, 2021
5 min read

Data: Facebook is No. 1 in revenue value for publishers, Twitter is a bust

By Liz Moorehead on July 7, 2021
4 min read

ICYMI: Digital marketing news update for July 6, 2021

By Liz Moorehead on July 6, 2021
5 min read

Google July 2021 core update rolling out over next 2 weeks

By Liz Moorehead on July 2, 2021
4 min read

ICYMI: Digital marketing news update for June 28, 2021

By Liz Moorehead on June 28, 2021
6 min read

Google punts third-party cookie ban to 2023 for 'responsible planning'

By Liz Moorehead on June 25, 2021
6 min read

ICYMI: Digital marketing news update for June 21, 2021

By Liz Moorehead on June 21, 2021
5 min read

Finally, Google page experience core update is rolling out

By Liz Moorehead on June 18, 2021
3 min read

Apple Mail privacy news spooks email marketers, newsletter creators

By Liz Moorehead on June 16, 2021
4 min read

ICYMI: Digital marketing news update for June 14, 2021

By Liz Moorehead on June 14, 2021
6 min read

ICYMI: Digital marketing news update for June 7, 2021

By Liz Moorehead on June 7, 2021
6 min read

Google June 2021 core update live, July core update coming

By Liz Moorehead on June 4, 2021
3 min read