The Paycheck Protection Program opened its loan portal again on January 11, 2021 as a form of assistance for businesses impacted by the Coronavirus. It is important to note that the program is accepting applications in “draws” from specific institutions, companies, and intermediaries at different times. You will want to ensure you apply with an eligible entity. The details can be found here:
The purpose of the Paycheck Protection Program (PPP) is for businesses to maintain their workforce during the pandemic.
The PPP loans have a 1% interest rate. According to the U.S. Small Business Administration (SBA), lenders and the government will not charge small businesses fees.
A variety of entities are eligible to apply for the PPP, including some small businesses, non-profits, independent contractors and more. Here you can see if you are eligible to apply:
Some borrowers could also be eligible for loan forgiveness. It depends on what the dispersed funds were used on and when they were used.
There are other options available to businesses looking for funding as a result of the impact of the coronavirus.
You can find a summary here:
Economic Injury Disaster Loans– helps entities that are suffering from a temporary loss of revenue because of COVID-19
SBA Express Bridge Loans- small businesses that have a “business relationship” with an SBA Express lender could get access to $25,000 promptly
SBA Debt Relief- the U.S. Small Business Administration has been working on debt relief efforts, find out more information here:
It is important to understand these Coronavirus Relief Options are subject to change and are considered temporary at this time. You will want to verify and follow up with the government and lenders for the latest information about eligibility, requirements, resources, and relevant information.
The SBA has a Coronavirus guidance and loan resources page here:
You can also get local assistance from the SBA here: