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Public Policy Newsletter Article

Congress Approves Funding for Small Company Loans

  • 2020-04-23T15:00:00.000+0000
  • Washington DC
  • Author: Laure Fabrega

This week, Congress approved a supplemental measure to add funding for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Both programs ran out of funding last week.

Biocom had been tirelessly lobbying Congress for additional funding for the past weeks. The bill includes $310 billion for PPP, $60 billion for EIDL, as well as $75 billion for hospitals and $25 billion for virus testing. President Trump has indicated he will sign the bill into law.

PPP was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide eligible applicants funding to retain their employees and pay themselves as business owners. The CARES Act also expanded the EIDL program allowing small businesses to receive an advance of up to $10,000 and bridge funding during the time they are shut down to pay their expenses.

These programs are extremely important to keep small life science companies afloat during these difficult times. Given the severity of the crisis, funding was exhausted shortly after the initial funds were made available on April 3 and thousands of California small businesses have not yet been given the opportunity to apply for either program. In addition, thousands of sole proprietors and self-employed individuals have not applied for PPP because the guidance regulating these types of businesses was only released last week.