The Payment Protection Program (PPP) is part a stimulus package that was approved in March and went into effect earlier this month. The program initially consisted of an allocated $349 billion that was meant to provide small businesses with forgivable loans so they can cover payroll costs during the COVID-19 pandemic.
However, the money was quickly used up within two weeks, mostly by larger companies. And now, millions of small businesses across the nation are still awaiting the status of their applications and wondering if they will be granted a loan. The good news is that the Senate has approved a second stimulus package to the tune of $320 billion, which is set to replenish the loan program.
In order to circumvent the bulk of the loans being given out to larger banks this time, $60 billion of the funds will be allocated for small lenders and community-based financial institutions like credit unions. The eligibility guidelines, however, are expected to remain the same.
What does the bank need in order to apply for the stimulus program?
If you’re looking to get into the next round of stimulus checks, then you will need to fill out the application and do your calculations with this form: Payment Protection Program Application
You can submit the application through a number of different banks, such as Bank of America or credit unions like America’s First. However, just note that some banks require that you already have an established business account with them, while others will allow you to open an account and then submit the application.
Can I use my own bank to apply for the stimulus program?
You can always inquire with your current bank as far as applying for the loan or use a different one. However, it is important to remember when submitting your application it does not mean that you will be guaranteed approval.
Act quickly, though, as funds for this round of the stimulus program can run out just as quickly as the last round.
LTD Global can help you during this time
Need help with your PPP calculation? LTD Global is here for you during this time. LTD Global has been assisting small businesses and non-profits with their accounting needs for years and we can help your organization stay on track during this period of economic stress. To find out more on how we can help, contact info@ltdglobal.com for more details.