The next phase of relief funding for small businesses takes effect today after President Donald Trump signed a new aid package into law on Friday.

The new funding includes more than $300 billion available to businesses as part of the Paycheck Protection Program (PPP) to support small businesses hurt by the novel coronavirus pandemic after the original $349 billion ran out.

Loans will be forgiven if all employees are kept on the payroll for eight weeks and the money is allocated to payroll, rent, mortgage interest, or utilities. There is a $10 million cap for small businesses per franchise.

Various denominations of US dollar bills rolled up on a table

Image source: Getty Images

The U.S. Treasury and Small Business Administration issued guidance on Sunday to lenders in the loan process. The entities said they are pacing the number of loans processed in the SBA's E-Tran system and instituting a "maximum dollar amount for individual lenders at 10% of PPP funding authority that any lending institution will be able to originate."

That means that the maximum each bank can issue in loans is about $60 billion. This will give all banks equal access to the funds for their customers. This does not include the $60 billion set aside for small banks.

Also, the PPP continues to operate on a "first-come, first-serve" basis for small businesses.

"We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously," U.S. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said in a joint statement.

The last round of funding was depleted in two weeks. Bank officials believe this could go even faster.