“We’re from the government, and we’re here to help.” Normally, this phrase doesn’t strike confidence in the hearts of Americans. However, in the past week, the government has rolled out several loan/funding programs to help keep Americans working. The most popular of these programs is the Small Business Administration’s Paycheck Protection Program (PPP).
SBA’s PPP provides 8-10 weeks of money for payroll, rent, and utilities. The most interesting part is that if the money is used in one of these approved manners, it may be completely forgiven. The program is being administered by the SBA in cooperation with banks across the nation. The program officially started last Friday, April 3. I talked to a banker Friday morning, and his bank already had a backlog of 1500 business applications (before noon). The government has be
en making changes to the program, so some banks have been slow to begin the application process.
If you think you’re eligible, talk to you bank and/or CPA and submit your application today! Currently, the government has only allocated $349 billion to this program. At the rate that businesses are applying, the money will be gone by the end of this week (hopefully, the government will extend this program and further fund it). Some banks, like Wells Fargo, have already stopped accepting applications due to demand.
To learn more, click here.
To find an eligible lender in your area, click here.
Several other grants and loan programs are also available (EIDL, Bridge Loans, STEP program). You can find more information here.