April 23, 2020- Today, the U.S. House of Representatives passed a supplemental funding bill that provides additional funding for the U.S. Small Business Administration’s Economic Injury Disaster Loan and Grant program and the Paycheck Protection Program.

All cooperative businesses are eligible to apply for the Economic Injury Disaster Loan and Grant program. These loans are direct from the U.S. Treasury. The application for EIDLs are available at covid19relief.sba.gov. Today’s legislation provides $50 billion for Economic Injury Disaster Loans and $10 billion for Economic Injury Disaster Grants, which may be issued in amounts up to $10,000.

Co-ops eligible for the SBA Paycheck Protection Program and in need of these funds should contact their local lender to begin the application process. PPP loans are issued through private lenders and 100 percent guaranteed by the SBA. Today’s legislation provides $370 billion for the Paycheck Protection Program, which includes a set-aside of funding for small credit unions, Community Development Financial Institutions, Minority Depository Institutions, and community banks.

Celebrate National Small Business Week at our May Co-op Circle Happy Hour

RCDG and SDGG grant applications are due June 3! Get ready with our webinars in partnership with USDA

“These supplemental funds are a critically important step to helping cooperatives weather the hardships caused by COVID-19. NCBA CLUSA appreciates Congress’s bipartisan work to provide additional funds to these programs and help more small businesses access financing by setting aside funds for credit unions and CDFIs,” said Doug O’Brien, President and CEO of NCBA CLUSA. “We are eager to continue our work on behalf of cooperative businesses to include the eligibility and development of co-ops in future emergency relief and recovery bills.”

This legislation passed the Senate earlier this week and is expected to be signed quickly into law by President Trump. PPP and EIDL applications may be available to processed as early as Friday, April 24, when funds are dispersed from the Treasury.

For NCBA CLUSA actions, webinars and frequently asked questions on co-op considerations for the Economic Injury Disaster Loan and Paycheck Protection Program, visit ncbaclusa.coop/covid-19-resources.