As of Tuesday, April 21st, The Senate has approved the $480 million package, here is what small businesses need to know:
Due to the previous small-business loan programming exhausting all its funds, lawmakers are currently working on another provision to restart the loan program. However, experts say that small business owners will need to move fast in order to get the loan if they qualify. However, according to CNN the new provision just approved by the Senate will include: “$310 billion authorized for the Paycheck Protection Program, $60 billion will be set aside for smaller lending facilities, including “community financial institutions, small insured depository institutions and credit unions with assets less than $10 billion.”
As seen by the previous loan program, funding ran out very quickly, in the span of two weeks. Therefore, small business owners should take the initiative sooner rather than later. According to Politico: President Richard Hunt, who represents large banks, has warned that the new funding is “going to go within, at most, 72 hours…But the odds are more like 48 hours.” Another frustrating aspect of the PPP (Payment Protection Program) is that many small business owners are finding themselves racing against larger, more elaborate businesses who have a better understanding of how to work the system in their favor.
According to NY Magazine, the Intelligencer, one such case was as followed: “One successful applicant, Kirsten Copeland, who owns a law office in Arizona, told me she submitted her PPP loan application to her bank on April 1, two days before banks were even able to begin processing the loans. Her bank, First Fidelity, told her the SBA had approved her loan on April 8, and the loan was funded on April 15, a two-week turnaround in total.” Whereas other applicants were not so fortunate either due to timing; Most applicants applied and were still in the process of being processed when the cap was met.
What can you do?
- Have your paperwork ready
- Work with a local, community bank to increase your chances of being helped
- Talk to multiple banks, but ONLY apply to one
- Always follow up with your application and be attentive
- Keep updated on any news, provisions, and other strategies to keep your business afloat
It is our hope that more small businesses will be able to have access to these loans, therefore if you are a small business owner act faster rather than later. The package is currently making its way to the House and is estimated to be approved by Thursday of this week.
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