On March 27th, 2020, Congress passed the CARES ACT, which included provisions that allowed banks to lend up to $349 billion in the Paycheck Protection Program set up by the Small Business Administration. The rules have changed several times and are likely to change again. For the time being, businesses can apply for the SBA PPP program to cover two months of payroll and office expenses.
As our national response continues to shift, there are new resources for small businesses introduced almost every day. The unprecedented number of applicants quickly drained the initial funds set aside for qualifying companies. On April 23rd, 2020, a new bill passed to add additional funding to the SBA PPP. The legislation allocated $310 billion into the PPP to help small businesses during this time of uncertainty.
Holly Wade, the director of research and policy analysis for the National Federation of Independent Business (NFIB), the country’s largest small business association, tells sources she’s heard from countless small business owners with concerns about the application and payout process for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
“The list of frustrations is long,” Wade says, noting that many businesses had trouble finding bank lenders to accept their applications, especially if their bank wasn’t participating in the SBA’s program after the application process kicked off at the beginning of April.
Many small businesses across the U.S. that have already been approved for loans, but are still waiting for money to hit their bank accounts. Others are worried that strict guidelines over how they can disburse that money could ultimately do more harm than good to their business.
Ultimately, the decision to apply for one of these loans is up to you. Still, we strongly suggest that you consider evaluating your options and taking advantage of the right opportunity for your business. Need help making that decision? Reach out to one of our representatives today.
For more information on SBA loans and the PPP program, visit our resource page here.