New COVID-19 loan funds advance in U.S. Senate

Published on April 21, 2020
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Veterinary borrowers should continue to prepare applications

The U.S. Senate today advanced a targeted COVID-19 stimulus package to replenish funding for small business loan programs, including the new Paycheck Protection Program (PPP). The legislation moves next to the U.S. House of Representatives, where approval is anticipated, possibly as early as Thursday.

While the AVMA is pleased to see movement toward providing additional funding, this injection of cash likely will be quickly depleted, based on the tremendous demand by small businesses. For practices impacted by the pandemic, we continue to urge veterinarians to discuss their needs with lenders as soon as possible – and work toward having applications finished as quickly as possible if they’re not already complete. 

What's in the Senate funding package?

The package approved by the Senate provides over $480 billion in new stimulus aid, including $370 billion for PPP and other loan programs administered by the U.S. Small Business Administration (SBA), $75 billion for hospitals, and $25 billion for COVID-19 testing. 

The SBA funding includes:

  • $310 billion for PPP loans, including $60 billion set aside for smaller financial institutions (as defined in the bill) 
  • $50 billion for SBA Emergency Injury Disaster Loans (EIDL)
  • $10 billion to support EIDL's forgivable cash grants of up to $10,000 

The AVMA’s COVID-19 legislative overview webpage includes detailed information about these small business loan programs and how to apply. A free webinar also is available on AVMA Axon to help veterinary business owners consider the various loan options. 

Resources for veterinary businesses in the COVID-19 economy

Find additional resources to help veterinary businesses navigate the economic effects of the pandemic in the business and economics section of our dedicated COVID-19 website, avma.org/Coronavirus.

We continue to develop new tools to help veterinarians and veterinary practices navigate COVID-19. To stay informed as new resources are released, subscribe to this blog and follow AVMA’s social media pages.

Comments

SBA loans and information

Please continue to update us on subjects and information related to small business during these difficult times. I applied for and received the PPP loan/grant. Will need information to make sure I am on track to make it forgivable.

PPP loan

My business loan is with a big bank. I’ve received no comment other than all was turned in on first day. The small banks are telling us they can’t do it unless we already have a loan with them.

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