The Paycheck Protection Program, a forgivable loan program created by last month’s Cares Act, was initially funded $349 billion but has since run dry. The Small Business Administration stopped accepting loan applications for the program last week after 1.6 million firms obtained taxpayer-backed, forgivable loans.
It looks as though Congress and the President are set to approve a new round of funding. The new measure would seek to devote an additional $310 billion to the PPP.
Many of our local business clients were not able to obtain PPP funding during the initial round. We encourage all of our business clients that were unsuccessful last time to get ready for this next round of funding. We anticipate that this next round of funding will also be allocated very quickly, as we understand many banks are still processing applications and will submit in bulk once the additional funding is approved. We do not have information as to when the next round of funding will be available. Our guess, and it is only a guess, is that the process may start late this week or early next.
If you are a business owner and have not yet applied for and received a PPP commitment, you need to take some actions now:
- Get an understanding of the program and if your business will qualify.
- Get your application in with a lender. Many of the local banks did not deal well with PPP loans in the first round. Get in communication with your lender and determine if they will process your application quickly. We urge you to get started with this process today.
Of course, if you have questions or need assistance, please call.