The federal Paycheck Protection Program (PPP) is back following $310 billion in additional funding.
The program new version was signed into law April 24 after initial funding approved March 27 ran out. The additional budget is designed to allow more small business owners to keep their businesses alive and, especially, pay their employees.
Those who have studied the efforts recommend that small business owners continue to apply for the funds, even though many did not get past the first round of the initial loan offerings. Acting quickly can help.
PPP loans are made through an eligible lender, like a local bank. If at all possible, business owners should work with a bank where they have a relationship because banks are already swamped and are less likely to work with new customers during the crisis. Legislators tried to aim this round of loans at small and mid-size banks, as well as credit unions.
Applicants must submit an SBA Form 2483 (Paycheck Protection Program Application Form) and payroll documentation. The SBA has an updated PPP Fact Sheet at this link.
As before, those who don’t get PPP loans can seek other options, including the SBA Economic Injury Disaster Loan Program, which received an additional $50 billion through new legislation.