Additional Funding Provided for Small Business and Non-Profit Loans Under the Paycheck Protection Program

Poole College of Management’s Bonnie Hancock, professor of practice and executive director of the enterprise risk management initiative, gives an update regarding the popular Paycheck Protection Program (PPP). 

New legislation has just been enacted to provide an additional $320 million in funding for the Paycheck Protection Program, which was a part of the CARES Act. The initial allocation of $349 billion for the loan program was very quickly exhausted when the Small Business Administration (SBA) was inundated with loan applications. The loan program was very popular as it provided for 100 percent federally guaranteed loans with two-year terms and interest of only 0.5 percent. Payments are deferred for six months and, most importantly, these loans may be forgiven if the organization maintains its payrolls during the crisis or restores its payroll afterward.  

Businesses that have already applied do not need to re-apply in order to be considered in the next round of funding. Further, once you have made an application, your organization will be assigned a unique number that will prevent you from applying multiple times. 

While some banking trade groups are estimating that the additional funding will also be quickly exhausted, businesses that qualify for these low-interest loans should still apply, but they should do so quickly. Applications and the loans are made through a bank and then the SBA must approve the loans in order for the loans to receive a federal guarantee and be eligible for partial or full forgiveness.  Approximately $60 million of the new funding has been allocated specifically to small, mid-size and community lenders, so applying through one of those lenders that has experience dealing with the SBA could possibly improve an organization’s odds of being approved. 

This post was originally published in Poole College of Management News.

One response on “Additional Funding Provided for Small Business and Non-Profit Loans Under the Paycheck Protection Program

  1. nannie says:

    Hello guys, I am Nannie Morris a professional in academic writing.

    I enjoy solving people’s problems and make them happy. That is what I have been doing for many years now.
    I have been writing since I was 12 years old and never knew it would turn out to be a full-time career. I have also been able to handle several assignments that involves writing. And I worked in three organizations as a volunteer to assist people.My interest has always been to help people succeed. And I go the extra mile to make that happen.
    I enjoy writing books and have helped people from countries like UK.
    I work with a company whose mission is to provide quality papers and make people happy. In fact, many students come to me for help on a daily basis because they know I always deliver. And I will continue to provide nothing but the best to build trust like I have been doing for the past few years.

    Expert writer – Nannie Morris – elearninag.com Corps

Leave a Reply to nannie Cancel reply

Your email address will not be published. All fields are required.