The U.S. House of Representatives on Thursday agreed to add $320 billion to the PPP that $349 billion funding ran out in two weeks.
Under the scope of CARES Act which took effect in March, $349 billion funding allocated by PPP (Paycheck Protection Program) ran out in two weeks and it caused a reaction. Although small businesses couldn’t receive any loan, some big businesses, such as Shake Shack, Ruth’s and Potbelly, had returned loans ranging from $10 million to $20 million. After the backlash to the fund’s expiration in 2 weeks, the U.S. House of Representatives agreed to add $ 320 billion to the PPP on Thursday, and President Trump signed the law on Friday. At the same time, the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, which has been on hold for a week, was also agreed to be reinstated. Congress passed a $60 billion bill that providing additional funding for the EIDL program. The EIDL program had been expanded under the CARES Act. to make it easier for businesses to get loans. The legislation also authorized $10,000 advances that are forgivable if the proceeds are spent on payroll.