April 23, 2020
With Congress expected to pass an additional $484 billion relief package as soon as today, many small businesses that may have missed out on the first Paycheck Protection Program (PPP) could see financial relief. The new federal aid package will provide $310 billion for the small business loan program, with $60 billion set aside for smaller community lenders—helping to steer resources to those small businesses that have historically been undeserved.
In anticipation of this additional relief, we have been working in overdrive to help as many small businesses as possible be ready to secure the funding they need to stay afloat and keep paychecks coming. With the first $350 billion round depleted after just 13 days, we know that speed and efficiency are key in accessing the next round.
Some lessons learned from the first round can help small businesses who may have previously been left out of relief efforts:
* Like the first, the second PPP round is first-come, first-serve, and the funds are likely once again to run out quickly. If they don’t already, small businesses should have their application and all required documentation ready to go. Some banks, including our banking partner First Bank of the Lake, have created online portals to quickly onboard qualified small businesses into the SBA loan approval system ahead of the new round.
* If a business has already submitted a loan application with another organization or been advised the application was in process, but has not received a confirmation number from the SBA with their reserved funds, many banks and other lending organizations can run a parallel application. If the business indeed has reserved funds from the first application, the second application will simply be withdrawn.
What’s next after the PPP expansion? We know that the relief bill will also include $60 billion for the Small Business Administration’s Economic Injury Disaster Loan program, providing a mix of loans and grants for small businesses. As noted in an earlier blog piece, this is another important program to help small businesses navigate through this crisis and secure essential relief.
Through these stressful times, knowing that more resources and support may well be needed to help businesses and people affected by the economic fallout of COVID-19, we continue to focus – as we always have – on small businesses across the country who are most in need of capital now.
As a small business owner, if you have questions or wish to gain access to the portal through our banking partner First Bank of the Lake, email pppsupport@firstbanklake.com.
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