Don’t wait! Apply now for SBA PPP and EIDL loan programs

| April 29, 2020

Don’t wait! Apply now for SBA PPP and EIDL loan programs

If you plan to apply for the Small Business Administration (SBA) Payment Protection Program or the Economic Injury Disaster Loans, we recommend you do so immediately!  During the last application round, funding was exhausted within days. The Small Business Owners Guide provides additional information on these programs.

Last week the president signed a new relief bill to provide additional funding to key programs in the CARES Act, including the SBA Paycheck Protection Program (PPP) and the Economic Disaster Loans program.

Appropriations are as follows:

  • Paycheck Protection Program (PPP) – $321 billion in funding – $60 billion set aside for small, midsize and community lenders. In the first two days since the Small Business Administration (SBA) reopened the PPP application process, the agency has processed $52 billion worth of new PPP loans.
  • Disaster Loans – $50 billion for the Disaster Loans Program and an additional $10 billion for Economic Injury Disaster Loans (EIDL) grants. You can also call 1-800-659-2955.
  • Public Health and Social Services Emergency Fund – $75 billion for Health and Human Services (HHS) Hospital and Provider Grants to support the related COVID-19 expenses and lost revenue.
  • Testing – $25 billion for the HHS Public Health and Social Services Emergency Fund for expenses related to the research, development and expansion of COVID-19 testing.

CMS reevaluates Accelerated Payment Program and suspends Advance Payment Program

The Centers for Medicare and Medicaid Services (CMS) are reevaluating the amounts it will pay under its Accelerated Payment Program and suspended its Advance Payment Program to Part B suppliers.

CMS originally implemented these temporary loan programs to ensure providers and suppliers had the resources needed to combat COVID-19. The programs are typically implemented to provide emergency funding and address cash flow issues during a public health emergency or presidentially declared disaster.

The announcement was made after successfully paying more than $100 billion to health care providers and suppliers through the Accelerated Payment and Advance Payment programs. More than 21,000 applications were approved, totaling $59.6 billion to Part A providers (includes hospitals). For Part B suppliers, including physicians, nonphysician practitioners and durable medical equipment suppliers, almost 24,000 applications were approved for $40.4 billion in payments.

These are loan programs and recipients are usually required to pay back the funding within one year or less, depending on the provider/supplier type. CMS will not accept any new applications for the Advance Payment Program and will reevaluate all pending and new applications for the Accelerated Payment program.

View the updated Accelerated and Advance Payment Programs fact sheet for more information.