The U.S. Small Business Administration has already forgiven $100 billion in Paycheck Protection Program loans as it opens up a new round of applications for coronavirus relief for small businesses hard-hit by the pandemic.
The SBA reopened the loan portal Monday, initially just to community financial institutions, to distribute another $284 million in funding that will ultimately be available to both businesses that got PPP funding earlier during the COVID-19 outbreak and those that haven't received any relief yet. The portal will be expanded to include banks with fewer than $1 billion in assets Friday and to all qualifying lenders on Tuesday.
Thus far, the SBA has forgiven more than 1.1 million PPP loans totaling more than $100 billion. Small businesses owners don't have to pay it back so long as it goes to keeping workers on payroll and other qualified expenses.
“For any eligible small business continuing to struggle due to the coronavirus pandemic, the program has re-opened for new and certain existing PPP borrowers, and we encourage you to take advantage of the PPP to keep your workers on payroll, regardless of any local economic restrictions on your operations," SBA Administrator Jovita Carranza said. "SBA is continuing to work around the clock to forgive existing PPP loans and implement the next phase of this vital program.”
The SBA has gotten 1.34 million forgiveness applications for a total of $170.5 billion. So far, the SBA has approved 85% of applications, including 88% of the smallest borrowers with loans of up to $50,000.
So far, the SBA has backed more than 5 million PPP loans more than $525 billion in COVID-19 relief. Businesses can qualify for up to $2 million in the new round of PPP loans if they can demonstrate revenue fell by at least 25% during any quarter of last year and have fewer than 300 employees.
PPP funding now can be used more widely, including for operations costs, property damage costs, supplier costs, and worker protections such as sneeze guards, ventilation and drive-throughs.
© Copyright 2024, nwitimes.com, Munster, IN