The Paycheck Protection Program (PPP) was supposed to provide forgivable loans to small businesses so they can pay their payroll, rent, and utilities for 2 months. About 10 days ago, the PPP loan program ran out of money, so the US Small Business Administration stopped accepting PPP loan applications.
Last Thursday, Congress approved an additional $300 billion for PPP loans, and the SBA resumed taking PPP loan applications Monday, April 27, 2020, at 10:30 AM Eastern Time from banks on behalf of small businesses needing a PPP loan.
If your company’s PPP loan application was not approved during the first round, you should check with your banker to make sure that your application is still active and that your bank plans on submitting your application to the SBA for approval today. Much like last time, the funds are expected to run out quickly.
Because so many small businesses were crowded out of the PPP loan process by larger businesses, $60 billion of the new PPP loan money has been set aside for smaller and community bank customers. Small businesses who originally applied with a larger bank may want to consider seeking out a community bank or credit union for a PPP loan to increase their chances of success. You can find a list of approved PPP lenders in your area on the SBA’s website.
The PPP loan application is here and more details about the PPP loan program can be found here.