Employers: Get Ready for Round Two of Paycheck Protection Program
Small businesses interested in the Paycheck Protection Program are encouraged to contact their lender and gather documents to get ready for the second round.
Congress is poised to take action soon on a new federal stimulus bill that includes $310 billion for the Paycheck Protection Program. (Including fees, a total of $322 billion would be appropriated.)
Small businesses need to get ready now, The Wall Street Journal reports. One finance leader expects the money to be gone in a week.
The first round of the money, about $350 billion, was gone in a matter of days.
AWB reached out to the Region X U.S. Small Business Administration earlier this week for clarification on how applications will be processed.
"For PPP, it's going to depend on how lenders choose to manage applications that were received and not processed by the SBA; and, on the details of the legislation once passed," spokeswoman Melanie Norton told AWB.
It's unclear if 501(c)(6) organizations will be eligible for the Paycheck Protection Program. In the first round, they were not.
However, 501(c)(6) organizations and many other businesses are eligible to apply for the SBA's Economic Injury Disaster Loans. For those loans, applicants apply directly with the SBA.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis, said Cynthia Cowell, a spokeswoman for the SBA's Office of Disaster Assistance.
Questions? Contact AWB at 360.943.1600.