The deadline for businesses to apply for a Paycheck Protection Program (PPP) loan was quickly approaching its end, but swift intervention by lawmakers has granted business owners and the U.S. Small Business Administration more time.
The second round of the PPP loans began on Jan. 11 of this year with March 31 slated to be the deadline, but it has been extended through May 31. A PPP loan is intended to offer a direct incentive for small businesses to keep their employees on their payroll and to allow them to stay afloat during these unprecedented times. Many of our Greater Missouri Challenge graduates work in the not-for-profit sector or are in small businesses and may qualify for this new round of funding. Interested organizations are encouraged to connect with a participating local lender.
In addition, the American Rescue Plan included $7 billion in additional funding for the SBA as well as other provisions to further aid small businesses.
For eligibility, the business would need to comply under the SBA’s size standards, meaning they have to be considered a small business.
For different organizations or business structures, such as sole proprietors, independent contractors, people who are self-employed as well as business entities like partnerships and corporations can also apply.
These types of businesses were eligible since the first round of PPP loans but in the second round, the SBA opened the eligibility to more businesses like housing cooperatives, destination marketing organizations, chambers of commerce and economic development organizations.
It’s important to note that the loans can also be fully or partially forgiven.
Approved businesses would have to follow the SBA’s forgiveness terms such as having 60% of the proceeds being spent on payroll costs.
Additional information about the PPP loans and loan forgiveness can be found on the SBA’s website at sba.gov.