Paycheck Protection Program to be Replenished
President Trump signed a $484 billion coronavirus bill into law that includes $370 billion of additional money for programs administered by the U.S. Small Business Administration (SBA), as well as more funding for hospitals and testing.
Paycheck Protection Program
Banks have said they process SBA Paycheck Protection Program (PPP) loans on a first-come, first-served basis, and many continued accepting applications after the program’s initial funds were exhausted. Small-business owners should check with their lender to determine where they stand in the process, and if anything further is required of them at this time.
If you applied for a PPP loan when the program was first introduced, and didn’t get an answer, you do not need to reapply for the second round. Many lenders are continuing to process loan applications that didn’t get funded the first time around. You may be near the front if you applied shortly after the program got up and running April 3, but that depends on whether your application is complete and accurate and how your lender may be prioritizing loan applications.
While it isn’t too late for business owners who haven’t yet applied, demand is incredibly high. Reach out to your lender as soon as possible. The program is open to virtually every small business that has been adversely affected by COVID-19, including sole proprietors, self-employed individuals, independent contractors and nonprofits.
For more information, contact us, read our FAQs on Payroll Protection Program.
The information contained in this post may not reflect the most current developments, as the subject matter is extremely fluid and constantly changing. Please continue to monitor Yeo & Yeo’s COVID-19 Resource Center for ongoing developments. Readers are also cautioned against taking any action based on information contained herein without first seeking professional advice.