On April 21, 2020, the US Senate passed a bill authorizing the addition of $310 billion to the Paycheck Protection Program (PPP), which offers forgivable loans to businesses affected by the devastating COVID-19 outbreak. This comes after the initial $349 billion allocated for PPP Loans ran out in less than two weeks due to the overwhelming demand. Assuming this bill is passed by the House and signed by the President — and all indications are that this will happen — it might be another day or so before the SBA can reopen the program to new applicants.
The PPP was a major component of theÂ CARES Act (Coronavirus Aid, Relief, and Economic Security Act), which was signed into law on March 27, 2020. PPP Loans are designed to protect payroll — if you use the loan on operational costs (payroll costs come first) during the eight weeks after the National Emergency was declared, some of your loan proceeds may be forgiven. To this end, you’ll need to follow the guidelines outlined in the CARES Act when using your loan funds.
Where You Can Apply For A Paycheck Protection Program Loan
Currently, there are over 1,800 banks and lenders preapproved with the SBA to participate in the PPP loan program. These sources of funding include banks (both large and small), credit unions, online lenders, and loan matchmakers.
Based on reports from business owners who applied for PPP Loans during the last period in which funding was available, you may have more success applying for a loan through a smaller community bank or credit union rather than a big bank. In any case, you may want to start by applying with the financial institution you already use, as that may cut some steps out of the process. Even if they don’t offer PPP Loans themselves, they should be able to point you in the right direction.
One helpful resource in locating PPP lenders is the SBA’s Lender Match tool. The tool can help match your business with a PPP lender, either online or in your locality.
Again, for small business owners, our article that explains PPP Loans has some helpful information about who qualifies for a PPP Loan and how/where you can apply for such a loan. For the self-employed, however, the process is a bit different. Check out our article on applying for a PPP Loan as a contractor or freelancer for more details on the information you’ll need to provide.
Paycheck Protection Program Resources & FAQs For Small Businesses
This has been a tremendously stressful time for all of us. Unfortunately, small business owners and the self-employed have faced particular challenges and frustrations, as many were unable to get a PPP Loan during the last round of funding despite applying as soon as the funds became available. Many were not even able to determine the status of their loan application. Right now, things simply aren’t working as they should, compounding what is already a tragic era in our history.
Here at Merchant Maverick, we’ve heard your harrowing stories, and we understand your anger. Just know that we’re going to continue to help in whatever way we can as we all navigate this unprecedented time. You’re not giving up, so neither will we.
For more information on PPP Loans, how to apply for them, and how to check the status of your PPP Loan application, check out the following resources:
- SBA Paycheck Protection Program (PPP) Loans Explained: How They Work, Who Qualifies & Where To Apply
- How To Apply For A Paycheck Protection Program (PPP) Loan For Coronavirus Relief
- How To Check The Status Of Your SBA Paycheck Protection Program (PPP) Loan Application
Also, check out our COVID-19 hub for more information about how to weather this disaster intact. You can also explore our small business reviews to findÂ additional funding options. Now, let’s keep fighting the good fight.
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