PPP Loan Program Out of Money for Most Businesses
If you were planning on applying for a forgivable PPP loan for your business but have not done so yet, unfortunately the PPP program funding has run out for most businesses and major banks are no longer accepting applications. The only banks that may accept PPP applications are smaller banks like Certified Development Companies (CDCs), SBA microlenders, and Community Development Financial Institutions, which are set up to support underserved business owners.
To apply for a PPP loan for your business, you will have to do it through one of these entities, and not all of them are participating in the PPP program. You can find one in your area by clicking here. These entities will accept applications until the program ends May 31, 2021, or until the remaining funds are exhausted.
What if I already submitted my PPP application but have not gotten the money yet?
If you already applied for a PPP loan but have not received the money in your bank account yet, the Small Business Administration says that if your application has been issued an SBA loan number, your loan will be approved and you will be receiving your PPP funds. You can contact the bank where you applied for PPP to see if your SBA loan number has been issued.
Are there any other financial assistance programs available for my business?
The Small Business Administration offers several other economic relief programs. You can read about them here. Two of the main programs are:
- The Economic Injury Disaster Loan program (EIDL) is a 30-year loan with a 3.75% interest rate and can be used for any business expense. Collateral is required for loans over $25,000. Unlike the PPP loan, an EIDL loan must be paid back. Apply for an EIDL here.
- The Restaurant Revitalization Fund provides grants for restaurants, bars, and other food service businesses impacted by COVID-19. This program will provide restaurants with funding equal to their pandemic-related revenue loss (subject to a cap of $5 million per physical location). These grants are not required to be paid back if the money is used for eligible expenses (like payroll, rent, supplies, etc.) by March 11, 2023.
You can apply online with the SBA or you can apply with a SBA-recognized Point of Sale system (like Square or Toast). For more information on the Restaurant Revitalization Fund program, click here or call the SBA hotline at 844-279-8898.