On Tuesday, April 21, 2020, the Senate approved $310 billion in additional funding for the Payroll Protection Program (the “PPP”). This increases the PPP’s original funding cap, which ran out last week. The House is expected to vote and pass the new overall bill today, and then the President is expected to immediately sign it into law. In light of this development, borrowers that remain interested in receiving PPP loans have a second chance to apply — and they should apply as soon as possible.

Congress originally allocated $349 billion in funds for forgivable loans to small businesses, which generally includes companies with 500 or less employees, locations with 500 or less employees in the food and hospitality industry, sole proprietors, independent contractors, and other eligible firms. Congress designed the PPP to cover eligible borrowers’ payroll costs, and to a lesser degree certain operating costs, for a roughly two month period while businesses deal with the ongoing economic fallout of the COVID-19 outbreak.

Last week, less than two weeks after the April 3, 2020 application period start, the PPP’s original $349 billion fund ran out after borrowers rushed to apply for loans. This result was consistent with Treasury Department warnings that interested borrowers should apply for PPP loans as soon as possible because of lender processing times and the PPP’s funding cap. Borrowers and lenders alike also reported administrative difficulties that delayed applications. Moreover, the media devoted significant attention to perceived preferential access afforded to larger companies that allowed them easier access to loans.

The additional funding will increase the size of the PPP loan pool from $349 billion to $659 billion. It is almost certain, however, that these additional funds will not be enough to provide assistance to every small business in need. Moreover, it is unclear whether this round is the last and only time the government will replenish the PPP.

Simply put, businesses should submit their applications and required documentation, or locate a lender to apply, as soon as possible. This alert from the original start to the PPP’s application period outlines possible considerations for businesses, other firm resources, and links to instructions on documentation that interested borrowers should gather.