This post was updated on April 23.
Congress has approved a $484 billion relief measure to combat the economic fallout from the coronavirus pandemic. The legislation renews funding for two key small-business loan programs that ran out of money under the CARES Act by providing $320 billion for the Paycheck Protection Program (PPP) and $60 billion for the Economic Injury Disaster Loans (EIDL) program.
The relief package also includes $75 billion for hospitals and $25 billion for coronavirus testing.
“The additional $380 billion in new small-business funding approved by Congress is a welcome development for the thousands of home building firms that desperately need this important government program,” said NAHB Chairman Dean Mon. “Many of these companies are stuck in limbo waiting for this additional funding. As Congress develops the next economic package, it needs to take additional steps to ensure broader builder eligibility under the Paycheck Protection Program.
“Home building remains an essential business throughout most of the nation and ensuring land developers, multifamily property owners and the trade associations that serve the industry have access to this program must be a priority. Providing sufficient access to the PPP will allow builders to keep their doors open, keep their employees on the job and continue to provide housing opportunities for all Americans during this challenging time.”
Businesses applying for an EIDL may request an advance of up to $10,000 to be delivered within three days of the request. An applicant will not be required to repay this advance if the funds are used to cover payroll, provide sick leave or cover other business costs, even if the applicant is subsequently denied a loan under the EIDL program.
Under the PPP loan program, small businesses with fewer than 500 employees can take out loans equal to 2.5 times their average monthly payroll from 2019 with the total capped at $10 million. For many businesses that meet key conditions on the use of these funds, the loans may be forgiven.
More information on the two loan programs can be found at nahb.org.