The Illinois Hispanic Chamber of Commerce (IHCC) looks favorably on the efforts made by the federal administration and the Congress to increase funding for small business owners under the CARES Act.
After bipartisan deal, the US Congress approved a measure that would revive a program geared to keep small businesses from shuttering and their employees from going on unemployment because of the economic impacts of the coronavirus pandemic.
The nearly half-trillion-dollar measure would provide more funds to the Paycheck Protection Program, which was halted last week after it ran out of money.
These are a few takeaways from this second round called CARES 3.5:
- $310 billion for the SBA’s Paycheck Protection Program (PPP).
- $60 billion would be set aside for community-based lenders, smaller banks and credit unions to assist smaller businesses that don’t have established relationships with big banks and had a harder time accessing the funds in the first round of loans.
- $50 billion for the SBA’s Economic Injury Disaster Loan (EIDL) program
- $10 billion for SBA’s Emergency Economic Injury Disaster grants
The program was originally provided $349 billion as part of the massive economic stimulus package approved in March. It launched April 3 and processed 1.6 million loan application before funds ran out on April 14.
But a main gripe with the program has been that banks prioritized their existing customers and large businesses, which received millions in loans from the PPP, leaving many small businesses without access to the funds intended to keep their operations afloat.
Treasury Secretary Steven Mnuchin said this is the last round of money the government is providing to help small businesses during this crisis.
Based on what we have seen so far it is important that you try to apply as quickly as possible for an PPP loan.
- Call your bank immediately. PPP loans are managed only through the banks where you business have they account.
- You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application. Click HERE for the application.
You will need to provide your lender with payroll documentation (Payroll Tax Records). We͛ have prepared this guide to make it easier for you to navigate your way through the complex process of the PPP application. Click HERE
If you don’t have a business account at a bank, call us at 312 425 9500. We have contacts with regional banks and a credit union that can help you.
We can only recommend you if you meet all the requirements and have filled out your application correctly.
Move quickly. Call now. The funds of the CARES 3.5 can be finished as quickly as in the first round.
- If you been turned down by any banker, call us, we’ll help you.
- Any questions please don’t hesitate to call us, we’ll help you.
- Our mission is to help all latino business in Illinois grow.