PPP Applications to Reopen on April 27th

After funds from the initial PPP stimulus package were exhausted after only 13 Days, Congress reached a deal for a second round of PPP funds to get more money into the hands of small businesses affected by COVID-19.

The new round of stimulus funding moved through Congress on April 23rd, 2020 and was signed into law by the president today, April 24th.

The new spending package includes another $310 billion for the PPP program, but it is expected to last only a matter of days due to demand in the program, experts say. The bill also includes an additional $60 billion for the Economic Injury and Disaster Loan (EIDL) program, which also stalled last week.

In response to scrutiny over the number of large companies that were able to access the first round of PPP funds, the new round is setting aside $60 billion for businesses that don’t have established banking relationships, such as rural and minority-owned businesses. The SBA has also released new guidance on the eligibility of large public companies to apply for PPP funds, which were seen to have an unfair advantage in the first round pushing many small businesses out.

When the first round of funding was exhausted, the SBA shut down the application process. That means that “there are not any loans in the queue,” says Rob Scott, the Great Lakes Regional Administrator for the SBA in this CNBC article.

Lenders will start submitting the second round of applications to the SBA on Monday, April 27th.

If you have already applied with a lender, you do not need to reapply. Submitting a new application may delay approval, or even cause it to be denied. If you’ve already submitted an application, the best thing to do is check with your lender to confirm your application is complete and understand what you can expect once the application system re-opens.

If you are still looking for a lender, you may want to consider working with a local bank. Many small businesses have successfully moved through the PPP process with smaller lenders that are able to work closely with applicants and may not require an existing banking relationship. Gusto, a small business payroll provider, also put together this resource listing banks that are currently accepting PPP applications.

The SBA also released a newly developed FAQ to address commonly asked questions about the PPP program. You can download a copy of the PPP FAQ here.