CLARKSBURG, W.Va. — The Small Business Administration’s Paycheck Protection Program is now in its second round of funding as approved by new funding given to the service with the Dec. 2020 stimulus package.
“The SBA is very excited about the reopening of the Paycheck Protection Program. This is great news for WV and it’s great for our economy across the nation.”Small Business Administration District Director Karen Friel
The new PPP is authorized to give up to $284 billion to businesses and non-profit organizations through March 31, according to Small Business Administration District Director Karen Friel.
In the last round of the PPP, nationwide there were 5.2 million loans given in the amount of $525 billion, with an average loan size of $100,729; in W.Va, $1.8 billion was distributed to more than 18,000 in number of loans to businesses and other qualified entities, Friel said.
For this round of the program, there is a higher focus on providing funding to eligible applicants to those who did not receive a loan in the last round of the service, these applicants qualify for “first draw” loans, according to Friel.
Businesses which already received a PPP loan in 2020 are still eligible for funding, however, their loans are considered “second draw” loans, Friel said, and that there is now an expanded elibility to 501(c)6 organizations, as well as housing cooperatives, marketing organizations, news organizations and other types of businesses.
“It’s quite exciting. We are so looking forward to this stimulus getting through to West Virginia’s economy and again across the nation.”Small Business Administration District Director Karen Friel
Types of spending have also been included to the loan eligibility, which the SBA will provide help with business operations expenditures, supplier costs, worker protections which include sneezeguards, ventilation or property damage costs in general, according to Friel.
Accommodation industries and food service organizations are now able to receive a second draw PPP loan for 3.5 times the average monthly payroll cost, which is more than the previous 2.5 times payroll cost in the previous iteration of the PPP, Friel said.
Businesses which previously received PPP funding are eligible for loans if they have used or will use the previous funding before a “second draw” can be disbursed; no more than $2 million will be given in this round of the loan, according to Friel, and repayment terms are the same as the last round of funding.
The SBA has been having a “tiered” rollout of organizations able to offer loans to eligible businesses, Friel said, which began on Monday for new businesses for “first draw” loans at community financial institutions; On Wednesday, community institutions began to accept “second draw” loans; Friday will begin “Tier 2” for PPP-eligible vendors with $1 billion or less in assets; the final period is on Jan. 19 when all eligible loan vendors are able to open applications.
“To make sure that there’s emphasis on reaching the smaller lenders and the smaller rural small businesses and entities across the nation, they’re going to have some times after opening up Tuesday to all, they’re going to have some hours that are solely dedicated to those smaller banks so that they show that they’re able to get those applications processed, as well.”Small Business Administration District Director Karen Friel
All loans, “first” and “second” draws, are reviewed equally, according to Friel, and the local SBA office in West Virginia will be offering training sessions and seminars in the PPP’s updates, as well as seminars on the disaster loan program while still offering their regular programs and services.
Those wishing to learn more about the new PPP funding or find out information about the local SBA office may visit www.sba.gov/localassistance for updates from the local SBA office, Friel said.
“We would like for everyone to stay tuned, sign up for the updates that you can receive from our office because there will be continuous information that comes down throughout this entire pandemic until it ends. And as the information comes down, we will be providing training and pushing out the updates and hopefully working with people like WBOY to be able to get the information out to everyone.”Small Business Administration District Director Karen Friel