Second Round of Paycheck Protection Program Applications Begins Today
NEW ORLEANS – The SBA resumed accepting Paycheck Protection Program applications from participating lenders at 9:30 a.m. on Monday, April 27.
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA said it 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.
Business owners can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and other regulated lenders. A recent report showed that community banks such as Fidelity, Home Bank and Gulf Coast Bank were able to process more loans than the big guys. The first $349 billion of PPP funding under the CARES Act lasted about a week before it was depleted and some say this round will only last four to six days.
Business are encouraged to apply as quickly as possible.