PHILADELPHIA – Billions of dollars in potentially forgivable Payroll Protection Program capital remains available to small businesses and nonprofits to help provide eight weeks of payroll and certain overhead to keep workers employed. PPP, laid out by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is responsible for infusing billions of dollars of capital into small businesses nationwide and saving jobs.
The second round, which kicked off April 27, has awarded 2,378,057 loans worth $181,158,888,644 as of close of business May 5. More than 900K of those loans, worth $57,296,660,188, were issued by small lenders. SBA forgives the portion of Paycheck Protection loan proceeds used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. Loan payments may be deferred for one year, and is retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
“The Paycheck Protection Program is working,” said SBA Mid-Atlantic’s acting Regional Administrator Steve Bulger. “For it to work for you and your employees, you must submit an application through a participating PPP bank, credit union, CDFI or online lender.”
Approved lenders can be found using the lender locater at: https://www.sba.gov/document/support--paycheck-protection-program-participating-lenders. Forgiveness is based on the borrower maintaining or quickly rehiring employees while maintaining salaries and hours. PPP loans have a maturity of 2 years and an interest rate of 1%. A copy of the PPP borrower application form can be found at: https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form.
RA Bulger is available for interviews through the contact information above. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.