The loan program – which the Small Business Administration had to close on April 16 when the first tranche of $ 349 billion dried up in less than two weeks – will reopen Monday at 10:30 a.m., according to a statement from US Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza.

The loans, which are part of the government’s coronavirus relief program, do not have to be repaid if they are immediately used to cover pre-crisis salary expenses.

I have already applied. Do I have to apply again?

You shouldn’t have to do this if the lender you worked with processed your loan application. In some cases, the bank may even have it ready to send for final approval to the SBA.

“The majority of banks continued to process applications after PPP funds were exhausted in anticipation of additional funding. Once the SBA reopens the program, pending applications should be processed in the order in which they are received. have been approved by the bank, ”said a spokesperson for the Consumer Bankers Association. .

While this can be difficult to go through, try checking with your loan provider to see if there is anything more you need to do to speed up the process.

What is the probability that I will receive the money in this second round?

This is unlikely if you have already applied. The problem is, there is a huge backlog of applications that weren’t approved before the first round of funding ran out.

Estimates of the number of people already in the queue range from 1 million to a few million. Additionally, even after the PPP shut down on April 16, many lenders continued to accept new applications assuming Congress would add more money to the pot.

During the first loan cycle, 1.66 million applications were approved, according to the SBA. A roughly similar number can be approved in the second round.

“We already believe that the pending requests exceed the newly allocated funds. So there is going to be a shortfall requiring additional credit,” Jaret Seiberg, analyst at the Cowen Washington Research Group, said in a note to clients.

There will likely be continued pressure for lawmakers to do more to help small businesses.

I haven’t applied yet. Should I bother?

Seiberg believes pre-existing apps could “consume all new funds by the end of the week.” So new applications might not do the cut this time. But applying anyway can be interesting for several reasons.

First, there’s always a chance that lawmakers will approve a third round of funding in the coming weeks and you’d be in line for that.

Second, if you are a very small business, especially in an underserved area, such as a low- or moderate-income neighborhood or a rural community, you may want to consider applying with a lender designated as Community development financial institution or a small local community bank or credit union with assets of less than $ 10 billion.

This is because $ 30 billion of new PPP funding is earmarked for these small lending institutions. Even these lenders – who were very active in the first round of funding – can have long lines of existing applicants. But it may be worth it if you can file by Monday, said Gwendy Brown, vice president of research and policy at Opportunity Fund, a small business nonprofit lender.

And third, even if these lenders can’t get you financing this time around, the more small businesses that apply, the more it will demonstrate to lawmakers how much support will be needed to help small businesses survive. Brown said. “It is to quantify the need.”

(Here is the list of approved lenders for PPP.)

Will public enterprises still benefit from PPP loans?

There was outrage that some state-owned enterprises obtained loans – over 175 of them, according to a CNN Business analysis.

Some said they would return the money and others might do so in light of new Treasury guidelines, which reiterated the obligation of state-owned companies to certify in good faith that they need the money and cautioned that they should be prepared to demonstrate this need upon request. of the SBA.

Translation: If you don’t need it, don’t apply. And if you’ve already got a loan, pay it back or else.

“The SBA and the Treasury are effectively threatening to bring fraud charges against publicly traded companies that have received Paycheck loans.… We believe this will force the majority of publicly traded companies that have received Paycheck Protection grant loans to return the money by May 7, “Seiberg says.

It is still not officially known what will happen to the returned money, as there are technical issues that need to be addressed. But in a Tweeter On Friday morning, Senator Marco Rubio, chairman of the Senate Small Business Committee, said the money repaid “will be added to whatever Congress has appropriated” for the loan program.

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