In just four months last year, more than 5 million U.S. businesses received paycheck protection Program loan (PPP). It helped them pay their workers, their mortgage or their rent and their utility bills.
Unfortunately, many small businesses owned by minorities, women and veterans did not get PPP loans last. year. We want to make sure you know how to apply for the financing your business really needs.
But you have to act quickly. P3 ends May 31, but many lenders may stop accepting applications sooner so they have time to process.
This means you need to get started quickly with a PPP app. funds to help you with payroll and other bills, to get your fair share. Small business The administration (SBA) and participating lenders are working hard to make these loans accessible to more businesses in low and moderate income communities. And small businesses, like hair salons, restaurants, nail salons, clothing brands, bars, bodegas and independent contractors.
Here are eight facts you need to know about P3s that may encourage you to apply:
- Congress funded it with $ 284 billion for 2021. This is enough for millions of additional loans.
- This is for new borrowers. The SBA has already approved more than 704,000 loans for borrowers who did not have one last year. The SBA also approved loans for the second time borrowers.
- A PPP loan can be canceled. Up to 100% of your loan could be canceled if you qualify and meet SBA requirements. This means that you would not have to repay the remitted amount.
- Companies with few employees receive special attention. Until March 9, the SBA accepts requests only from companies with less than 20 employees.
- Most of the loans are relatively small. The average loan granted to new PPP borrowers this year is $ 22,000, says the SBA.
- Small businesses are approved. 90% of PPP loans approved by Chase in 2021 are companies with less than 20 employees.
- Help is available to understand PPP. chase.com/ppp has a webinar, checklists and FAQs for will guide you through the application process. You can also consult sba.gov/ppp.
- It is easy to find participating lenders. The SBA website – sba.gov/funding programs / loans / lender matching – has a “Lender Match” link to help you connect to a nearby lender you.
The 2021 PPP is due to expire on March 31, but to send your request to the ASB by then you must to act now. If you think you are eligible, we urge you to find a lender, prepare your information, and apply.