One Week Left to Access More Than $128 Billion in Available Paycheck Protection Program (PPP) Funds
*As of June 20, the SBA has approved more than 4.6 million PPP loans valued at nearly $515 billion. For Alaska, that is 10,523 loans for $1.2 billion
There is one week left for small businesses, nonprofits, independent contractors, and other eligible borrowers to access a forgivable loan through the Paycheck Protection Program (PPP). More than $128 billion in PPP funds are still available.
The PPP is a loan designed to provide a direct incentive for small businesses and nonprofits to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
PPP loans are made by more than 4,500 participating PPP lenders nationwide; and, guaranteed by the SBA. Interested borrowers apply with local lenders who then submit the application to the SBA for approval.
“The SBA has streamlined many of its lending processes to accommodate the high volume of PPP loans. Yet compiling paperwork for a commercial loan still takes time,” SBA Pacific Northwest Regional Administrator Jeremy Field said. “That’s why we urge small business and eligible organizations who can benefit from this forgivable loan to apply now.
3 Reasons to Consider a PPP Loan
1. Support to Smaller Businesses
Most PPP loans are going to smaller firms. The average loan size is $110,000; and, two-thirds of PPP loans are for $50,000 and under.
2. Accessibility to Underserved Businesses
More than one million loans have been disbursed by lenders who speci
Additionally, the SBA launched a dedicated online tool for small businesses and non-profits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Micro-lenders, as well as traditional smaller asset size lenders in the PPP.
Lender Match is an additional resource for pandemic-affected small businesses that have not applied for or received an approved PPP loan to connect with lenders. Plus, PPP information and forms are translated into 17 languages.
3. More Flexibility
With the enactment of the PPP Flexibility Act, it extends the covered period for loan forgiveness from eight weeks after the date of disbursement to 24 weeks, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.
It also adjusts the minimum amount of loan proceeds borrowers use for payroll costs to qualify for forgiveness from 75% down to 60%; and, it gives safe harbor from a reduction in loan forgiveness as it relates to the inability of a business to return to previous business levels.
More information about the PPP – including how to find a PPP lender, application forms, and the new simplified forgiveness and EZ forgiveness applications – is available at www.sba.gov/