Let’s be candid: $349 billion just doesn’t go as far as it used to. In just two short weeks, the entire $349 billion allocation for small business loans under the landmark CARES Act Payroll Protection Program (PPP), part of the single-largest government stimulus package in history, was completely exhausted by the onslaught of distressed businesses (the “PPP I Loans”). The result of this eye-popping phenomenon was that the government passed “PPP II: The Sequel,” authorizing yet another $310 billion in PPP loan availability (the “PPP II Loans”). The lending institutions that will actually make these PPP loans (and the lawyers that both sue and represent them) rejoiced. Distressed small businesses, aghast at being too slow on the draw (or perhaps lacking clout at their banking institutions) to get a PPP I Loan, breathed a collective sigh of relief, but perhaps for naught: It is anticipated that the PPP II Loans will be exhausted in 72 hours. Find out more from authors Thomas J. Salerno, Gerald Weidner, Christopher Simpson and Susan Ebner from Stinson LLP in this ABI exclusive.
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