Do you qualify? And if so. where do you apply? Well… we have some answers below:
Round 2 of the SBA’s Paycheck Protection Program (PPP) opened on Monday, Jan. 11, 2021. For the first week of PPP2, the program is only available to small businesses applying at community financial institutions (CFIs). These lenders provide funding for small businesses in underserved communities, including minority-owned businesses that had a hard time securing funding during the initial round of PPP lending. CFIs include Community Development Financial Institutions (CDFIs), Minority Depository Institutions, Certified Development Companies, and microloan intermediaries.
The SBA and the U.S. Treasury Department, which oversee the PPP plan to open the program to all small businesses soon, and while the exact date is still not confirmed, it is likely to be sometime during the week beginning Jan. 18. The second round of PPP lending, part of an overall COVID economic stimulus package, The Economic Aid Act, passed at the end of December, provides for a $284 billion pool of money to help struggling businesses survive during the pandemic. Eligible companies include companies that previously received a PPP loan during the first round of lending, as well as those applying for the first time.
PPP2 includes changes to bolster truly small businesses, rather than larger ones, including corporations that have access to capital markets. For instance, in Round One of PPP, Shake Shack was among the corporations that applied for and were granted a $10,000,000 PPP loan that the burger chain later returned. Interestingly, according to Crain’s, Shake Shack now has plans to open 60 new restaurants across the country this year at a time when independent restaurants are still struggling to survive. Fortunately, for smaller eateries, there are new provisions in the PPP legislation to aid hard-hit restaurants and hotels.
You can read the full article at https://www.forbes.com.