In our previous blog post, we discussed relief available for nonprofits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “Act”). As described, the Act authorizes up to $349 billion for general business loans available to certain exempt organizations under the Paycheck Protection Program (“PPP”), and provides for Economic Injury Disaster Loan (“EIDL”) assistance to states to make loans available to businesses, including private, nonprofit organizations, to help alleviate economic injury caused by COVID-19.
The U.S. Small Business Administration has now issued a Lapse in Appropriations Notice announcing that it is unable to accept new applications at this time for the PPP or the EIDL COVID-19-related assistance program based on available appropriations funding. For now, EIDL applicants who have already submitted applications will continue to be processed on a first-come, first-served basis.