On April 24, 2022, President Trump signed a bill that, amongst other things, authorizes the addition of $310 billion in funding to the Paycheck Protection Program (PPP), that provides forgivable loans to businesses impacted by the devastating COVID-19 outbreak. This uses the first $349 billion allocated for PPP Loans ran out in less than fourteen days because of the overwhelming demand. Although the bill has now been signed into law, it may be another day or so prior to the SBA can reopen this program to new applicants, and much (if not all) of the funding is anticipated to go to the backlog of businesses that requested PPP funding after the previous aid package passed but whose funding requests were not fulfilled because the initial $349 billion in funding ran dry.
The PPP would be a major element of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), which was signed into law on March 27, 2022. PPP Loans are designed to protect payroll — if you use the loan on operational costs (payroll costs come first) throughout the eight weeks after the National Emergency was declared, a number of your loan proceeds may be forgiven. To this end, you’ll have to stick to the guidelines outlined within the CARES Act when using your loan funds.
Paycheck Protection Program Second Funding Round FAQ
If I applied for the very first round of funding, shall we be held still in the running to obtain a loan? Do I need to reapply?
Yes, you're still in the queue to obtain a PPP loan, and according to the Wall Street Journal, no, you do not have to apply again in case your application didn’t get approval in the first round of funding. If you’re unsure, you should check with your lender to make certain that your initial application contained all the information.
I haven’t applied yet. Could it be still feasible for me to get a loan?
Unfortunately, experts are projecting that all the funding from this round is going to be claimed by applicants already in the pool. However, we recommend that you apply in case. At the very least, this can ensure that if additional funding rounds are approved in the future, your application come in the queue.
What concerning the Economic Injury Disaster Loan (EIDL) program? Could it be reopening?
Regrettably, there is no word at the moment concerning the status of the EIDL program reopening. However, we'll continue to monitor the situation and keep you updated when there are any developments. The brand new coronavirus relief package did include additional funds earmarked for EIDL in addition to PPP; in reaction, the SBA did resume processing EIDL applications already within the queue, but nonetheless remains closed for new applications.
Where You are able to Obtain a Paycheck Protection Program Loan
Currently, you will find over 1,800 banks and lenders preapproved with the SBA to participate within the PPP loan program. These causes of funding include banks (both small and big), lending institutions, online lenders, and loan matchmakers.
Based on reports from business owners who applied for PPP Loans over the past period in which funding was available, you may have better results trying to get financing via a smaller community bank as opposed to a big bank. In any case, you may want to begin by applying with the financial institution you already use, as that may cut some steps from the process. Even when they don’t offer PPP Loans themselves, they must be in a position to point you within the right direction.
One helpful resource in locating PPP lenders is the SBA’s Lender Match tool. The tool can help match your business having a PPP lender, either online or perhaps in your locality.
Again, for small businesses, our article that explains PPP Loans has some helpful tips about who qualifies for a PPP Loan and how/where you are able to make an application for this type of loan. For the self-employed, however, the operation is a bit different. Check out our article on applying for a PPP Loan like a contractor or freelancer for more information around the information you’ll need to provide.
Paycheck Protection Program Resources & FAQs For Small Businesses
This is a tremendously stressful here we are at all of us. Unfortunately, small business owners and the self-employed have faced particular challenges and frustrations, as many were not able get a PPP Loan during the last round of funding despite applying when the funds became available. Many were not even able to determine the status of the application for the loan. Right now, things simply aren’t being employed as they ought to, compounding what is already a tragic era within our history.
Here at , we’ve heard your harrowing stories, and that we understand your anger. Just know that we’re likely to continue to help in whatever approach we take to can as we all navigate this unprecedented time. You’re not quitting, so neither can we.
- SBA Paycheck Protection Program (PPP) Loans Explained: The way they Work, Who Qualifies & Where you can Apply
- How To Apply For A Paycheck Protection Program (PPP) Loan For Coronavirus Relief
- How To determine the Status Of the SBA Paycheck Protection Program (PPP) Loan Application
Also, take a look at our COVID-19 hub for more information about how to weather this disaster intact. You may also explore our small business reviews to find additional funding options. Now, let’s keep fighting the great fight.
