SYRACUSE, N.Y. — Monday, April 27 at 10:30 a.m. is a big moment for small businesses that were left out of the first round of the Paycheck Protection Program (PPP).
That’s when the U.S. Small Business Administration will resume accepting PPP applications from approved lenders on behalf of eligible small businesses and nonprofits.
This comes after President Trump on Friday afternoon signed into law the Paycheck Protection Program and Health Care Enhancement Act. It provides $310 billion in additional funding for PPP ($250 billion) and emergency small-business grants ($60 billion).
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The first round of PPP — the low-interest forgivable loan program designed to help small companies keep their employees during the coronavirus shutdown — ran out of its initial $349 billion in funding on April 16 after less than two weeks.
Almost 1.7 million loans were made nationally in a mad scramble to provide small businesses emergency relief amid the COVID-19 pandemic that has shut down much of business and daily life in America.
There was such a large backlog of small-business loan applications in process when the funding ran out that many in the banking and small business communities think the new funding is probably already spoken for and will run out in a matter of days.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously,” SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin said in a statement Friday. “All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.”
The SBA will forgive loans if businesses keep all employees on the payroll for eight weeks and use 75 percent of the money for payroll, with 25 percent going for other approved expenses like interest on mortgages, rent, and utilities.
The 1 percent loans have a maturity of two years, and businesses can borrow up to $10 million.
For more information on the Paycheck Protection Program, visit: sba.gov/paycheckprotection.
