The PPP has fresh funding: Can my business get a forgivable loan?
April 24, 2020
Now that President Trump has signed the bill approving the second round of funding to support the Paycheck Protection Program and Economic Injury Disaster Loans to help small businesses struggling to survive during the COVID-19 pandemic, many businesses wonder if they can still apply for an SBA PPP loan or EIDL grant.
The answer is yes, but the demand is so great that the money will probably run out very quickly (again). There was a huge backlog of PPP applications left over from the first round of funding (during which roughly 1.6 million businesses were approved for $350 billion in PPP loans), and the ~$320 billion influx of new cash is unlikely to go far.
Womply is acting as a facilitator to connect American small businesses to SBA-authorized lenders to get emergency loans for COVID-19 relief. Start your free application here, or call us at 855-208-8813 for a free consultation.
There are some provisions in the new bill which are intended to extend the reach of the funding to marginalized lenders and businesses, and that $60 billion portion may last a bit longer, but we expect that the main pot of new funding will be snapped up quickly.
Since “larger small businesses” have been getting PPP loans, will there be any left for me?
There is a growing social “shaming” trend against larger, multi-million-dollar businesses (still below 500 employees per the requirements of the PPP) receiving large PPP loans when the intent of the bill is to help save America’s small businesses and employees’ jobs.
But of course these larger, more successful businesses are also feeling the impacts of the COVID-19 crisis and have more employees that are in need of a paycheck, despite not being able to work full or even partial hours, or these businesses being closed by state laws.
Since social pressure has been motivating larger (technically small) and profitable businesses with other cash resources to refuse the opportunity to acquire PPP funding (and in a few well-publicized cases, to return their PPP loan money in a gesture of good will and good publicity), this may potentially leave more truly small, local businesses with a better chance of getting PPP loans in this round of funding.
However, if you haven’t already submitted your PPP loan application, we urge you do to so with all possible dispatch (like, RIGHT NOW). Start your free application here.
It’s not too late to apply for a PPP loan, but don’t wait
Tens of millions of small businesses are in need of emergency funding during COVID-19, and we expect the second round of funding will run out very quickly.
However, you should still start your free application here. Even if the second round of PPP money runs out (and it will), you need to get your application submitted and in the queue. When an authorized SBA lender approves and submits your application, you are issued what’s called an E-tran number. This number effectively withdraws your loan money from the PPP reserves and marks it as “spent.”
If you don’t have an approved PPP loan application submitted and an E-tran number issued, you will not get your share of the PPP funding. So don’t wait!
(By the way, we expect there will be at least one more round of emergency PPP stimulus funding approved by congress before this is over.)
Womply is a verified loan agent working to help businesses get connected with participating SBA 7(a) approved lenders during this crisis.
Start your free PPP application here or call us at 855-208-8813 for a free consultation.
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