This morning, the Small Business Administration reopened the Paycheck Protection Program (PPP) to businesses that have not yet taken a PPP loan. PPP loans are federally backed, fully forgivable loans that have served as a lifeline to businesses throughout the COVID-19 pandemic. During these first few days, access to the program is limited to the following types of lenders: Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. CDFIs and similar groups are financial intermediaries with community development as their primary mission. Many area banks and other traditional lenders are approved CFDIs. To access a PPP loan today, contact an area lender directly.
The PPP will open soon for draws from companies that have already received a loan. If your company falls in that category and would like to pursue a second draw, contact your local lender to prepare.
Applications will close March 31, 2021. PPP loans are 100% forgivable if spent on eligible expenses, which include payroll, mortgage, rent, utilities, and other vital needs. Any part of the loan that is not forgiven has a fixed 1% interest rate. Loans have a 2-5 year maturation period. No collateral or personal guarantees are required. Visit the SBA’s PPP website for more specific information about the program, or contact an area lender today. BRAC will continue to track the newest version of the PPP and other recovery programs. Keep checking brac.org/recovery for information.