Did your Paycheck Protection Program (PPP) loan application go unfunded when program coffers ran dry last week? Have you yet to apply for a PPP loan?
Today there may be good news for you. A new bill will be signed into law to infuse an additional $310 billion into the program. This is on top of the $350 billion loaned out as of April 13, 2020, under the CARES Act.
Small businesses, including nonprofits, with fewer than 500 employees, can apply for forgivable loans of up to 2.5 times monthly payroll expenses. You’ll find more detail on PPP and loan forgiveness requirements here.
Of special interest to nonprofits: $60 billion of the $310 billion funding injection is reserved for certain lenders — CDFIs and minority-serving financial institutions, as examples — to improve loan access for very small businesses and underrepresented communities.
Funds will surely go fast. In fact, there is speculation that PPP loan applications already pending may absorb all new funding.
Still, experts at the U.S. Chamber of Commerce recommend that you contact your lender and “get in line” for the program. Things are changing fast; more funds could be added.
You’ll have the best look working within an existing lending relationship. Financial institutions continue to attend to existing customers first.
The bottom line: With the PPP, you can keep your team members employed and get your loan forgiven. If you haven’t done so, contact your lender today to inquire about applying.