Small Business Alert – 2nd Round of PPP Funds
Shelter-in-place orders and social distancing practices have severely impacted small businesses across our state. The White House and Congress have reached an agreement on a bill that will replenish a loan program crafted to assist small businesses in need of financial relief during the COVID-19 pandemic. The final details of the bill are still in the works, but the new funding package is expected to total about $480 billion and provide roughly $300 billion for the Small Business Administration’s popular Paycheck Protection Program (PPP).
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent, mortgage interest, or utilities. The program rolled out in March but ran out of funds toward the middle of April, causing concerns across the country from the small business community. Lawmakers will try to pass the bill that releases the second round of PPP funds in the Senate on Tuesday, April 21. If passed, the House is expected to vote on the legislation Thursday, April 23.
In the meantime, we strongly encourage Mississippi small businesses to prepare and submit their loan applications to their local participating bank if they have not already done so.
Click here to learn more about the PPP application process.
Small businesses are the backbone of this country and our office is committed to helping business owners navigate through this tough time. Should you need further assistance, please do not hesitate to contact our office.
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