The latest stimulus legislation provides approximately $320 billion in additional funding for the Paycheck Protection Program (PPP), including $60 billion for community banks and smaller lenders. With this new round of funding, more than $670 billion will have been injected into the U.S. economy to combat the effects of the Coronavirus on the nation.
“Throughout this crisis, my Administration has taken unprecedented actions to rush economic relief to our citizens,” said President Trump in a ceremony at the Oval Office where the package was signed.
The bill also appropriates $60 billion more for the Small Business Administration’s (SBA) Disaster Loan Program. Last week, more than 4.4 million new Americans filed for unemployment insurance, according to the U.S. Department of Labor, bringing the total number of applicants to 26 million since businesses began shutting down at the outset of the COVID-19 pandemic.
The PPP was created as part of the more than $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act
, which converts the small business loans to grants and would be fully forgiven if 75 percent of the loan is used to keep employees on the payroll. The PPP’s funding was depleted in early April, as Congress pushed this latest stimulus package to further aid small businesses and inject some much needed help into a down economy.
This latest stimulus package signed by President Trump is the fourth such package to move through Congress, making it the largest emergency relief effort in modern U.S. history, with a $2.8 trillion price tag.