In a previous article, we laid out initial financial assistance available for small businesses in New York affected by the COVID-19 pandemic. As of April 23, the U.S. Congress has passed H.R. 266, the Paycheck Protection Program and Health Care Enhancement Act, which allocates additional funding for two key programs providing critical financing for small businesses during the COVID-19 pandemic. The President is expected to sign the Act today.


Funding previously provided under the Coronavirus Preparedness and Response Supplemental Appropriations Act and under the Coronavirus Aid Relief, and Economic Security (“CARES”) Act (H.R. 748) quickly ran out.

The latest round of funding passed by the U.S. Congress on April 23, 2020 provides for the following funding measures addressing existing programs:

  • An additional $310 billion is earmarked to replenish the Small Business Administration (“SBA”)’s Paycheck Protection Program, which provides forgivable loans to small businesses that retain their employees on payroll. The original $350 billion for the program ran out last Thursday after just two weeks.
  • $60 billion of this $310 billion funding is specifically dedicated to community banks with less than $50 billion in assets to ensure that smaller and women- and minority-owned businesses have better access to funding.
  • An additional $60 billion in new Economic Injury Disaster Loan funding is earmarked to provide grants and low-interest loans to small businesses hurt by the current pandemic.
  • Farmers will be able to access both the Paycheck Protection Program and the Economic Injury Disaster Loan funding, for the first time.
  • $75 billion for reimbursement to hospitals and health care providers for coronavirus expenses and lost revenue, in addition to $100 billion already provided for under the original CARES Act.
  • $25 billion to help state and local governments expand coronavirus testing and contact tracing capabilities.

Since the additional funds for the Paycheck Protection Program and for the Economic Injury Disaster Loan Program are earmarked for programs ALREADY established and controlled under the authority of the SBA, potential applicants seeking funding under either of those options should not wait for any specific notice by their lenders or by the SBA to file an application.

Since the new funding is expected to be exhausted very quickly, potential applicants are encouraged to submit applications to these programs IMMEDIATELY.

Applications for the Paycheck Protection Program should be made through your existing lender and not through the SBA. Qualifying business should immediately reach out to their existing lenders to explore applications to this program

Applications for the SBA Economic Injury Disaster Loan Program should be made directly to the SBA here.

Additionally, please note that, under recent guidance from the SBA regarding the Economic Injury Disaster Loan Program, eligible businesses, instead of receiving the immediate loan advance of up to $10,000, will instead receive $1,000 per employee, up to a cap of $10,000. These funds will be made available within three days of a successful application, and this advance will not have to be repaid.


As of this article, New York City programs geared towards small business have stopped taking applications as of 2 weeks ago, due to the high number of applications already submitted.

By: Pierre Ciric, Esq.
Member of the Firm, the Ciric Law Firm, PLLC

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