Round 2 still has over $100 billion for borrowers in need
Billions of dollars in potentially forgivable Payroll Protection Program (PPP) capital remains available to small businesses and nonprofits to help provide eight weeks of payroll and certain overhead to keep workers employed. PPP, created out by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is responsible for infusing billions of dollars of capital into small businesses nationwide and saving jobs.
The second round, which kicked off April 27, has awarded 2,378,057 loans worth $181,158,888,644 as of close of business on Tuesday, May 5. More than 900,000 of those loans, worth $57,296,660,188, were issued by small lenders. SBA forgives the portion of PPP loan proceeds used to cover the first eight weeks of payroll costs, rent, utilities and mortgage interest. Loan payments may be deferred for one year, and is retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
“In one week, PPP was able to help over 2 million small businesses keep fighting through this pandemic,” said SBA Buffalo District Director Franklin J. Sciortino. “The program is providing critical support to thousands of small businesses in Western New York. We encourage borrowers that need support for ongoing operations to apply.”
“The Paycheck Protection Program is working. Small businesses are keeping their employees on payroll and earning salary,” said SBA Atlantic Regional Administrator Steve Bulger, who oversees the federal agency’s operations in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands. “For this federal program to work for you and your employees, I encourage you to submit an application through a PPP-participating bank, credit union, CDFI or online lender.”
Approved Lenders can be found using the “SBA Lender Locater” at www.sba.gov/ppp.
Loan forgiveness is based on the borrower maintaining or quickly rehiring employees while maintaining salaries and hours. PPP loans have a maturity of two years and an interest rate of 1%. A copy of the PPP borrower application form with all information the federal government requires a small business to provide can be found at: https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form.
To learn more, visit www.sba.gov.