Payroll Protection Program Round 2 Opens April 27
Earlier this week, a new relief package worth roughly $484 billion was approved and signed into law Friday. The bulk of the package will go towards replenishing the depleted Payroll Protection Program loan program for distressed small businesses. It will also provide billions in funds for hospitals and coronavirus testing.
$310 Billion More for Small Businesses
The extremely popular Paycheck Protection Program for small business gets $310 billion in new money from this bill. New applications will resume Monday, less than two weeks after funds from the first round were exhausted. The U.S. Small Business Administration announced that Round Two of the Paycheck Protection Protection will launch at 10:30 a.m. ET on April 27th.
“The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans,” Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said in a statement. “With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief.”
New Guidance for Larger Businesses
This round, officials are discouraging big businesses from seeking loans. This comes after a big backlash when it was revealed that Shake Shack, Ruth’s Hospitality, and many more multi-million dollar companies had received funds. Lawsuits have already been filed against big banks like Chase, accusing them of favoring their biggest clients.
If you need to apply in this latest round of the Payroll Protection Program it might be a better idea to go with smaller banks. $60 Billion has been set aside for smaller community banks and the larger ones are overloaded with applications from the first round.
Payroll Protection Program Funds Will Run Out
The bottom line is that the Payroll Protection Program has received new funds for a second round of relief for small businesses, however that money won’t last long. Banks across the country have tens of thousands of apps from the first round with many many more expected to begin rolling in tomorrow.
Have you received a Payroll Protection Program (PPP) loan for your small business? Share your experience with the program in the comments.
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I applied on the 1st day of eligibility, received a loan number last Saturday and just finalized this afternoon. It was an easy process to do but a nerve racking wait since this bank (TD) received millions of applications and had a long list to run through. They, however, communicated with me every step of the way. Hopefully I’ll see the money in my account in a couple of days.
Many smaller businesses than mine used local banks and had the online documents to electronically sign and the money in their accounts within 3 days, start to finish.
I have a great relationship with my bank. I think that is key in securing the funds. If you don’t know your banker, it might be a good idea to start a business relationship with one moving forward.
Just to be clear, you got a loan number provided by the SBA on a Saturday? Also, what do you mean by finalized? Maybe I misunderstood, but I read and was that all loans were on hold until additional financing had been added to the fund, which happens tomorrow.
I received an email last Saturday from TD telling me that I had been approved for the PPP/SBA loan. I received a web address to submit my mobile phone number and a 5 digit loan record number.
When I clicked on complete, I immediately received another email stating to be looking out for a follow up email with closing details and instructions on how the funds were going to be deposited into my business checking account.
Like I said, the wait was nerve racking. The email finally came yesterday (Sunday) with a couple of areas that I had to check off and than using the mouse to sign my application.
Yes, the process runs everyday of the week including Saturday and Sunday.
I didn’t get in during stampede on the first round but my bank says my application is ready to go on this one. I also applied for the EIDL before the PPP. Yesterday I got a hard pull on my credit report from the SBA. I’m not sure which application it was for, but I suspect it was for the EIDL, since the PPP program is run through banks. Hope the data point helps.