SBA Update

June 1, 2020

Paycheck Protection Program – House Passes Bill To Change PPP

The House passed a bill last week that would allow businesses more leeway in using the funds obtained through the Treasury and SBA’s Paycheck Protection Program (PPP) created by the CARES Act to protect workers and support small businesses. Businesses could spend more on non-payroll costs, up to 40% instead of the previous 25% limit, and over a longer timeframe, with the initially required eight-week period for spending the loaned funds extended to 24 weeks. Additionally, the covered period for rehiring workers to keep payroll levels consistent with pre-virus levels would be pushed to the end of the year.

Summary of Paycheck Protection Program (data as of May 29, 2020)

Through May 29th, $510.24 billion in PPP loans have been approved by the SBA totaling 4.47 million small business loans through 5,513 participating lenders.  The average size of PPP loans is $114,144.

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Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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