Second Wave of PPP Loans
It has been over 50 days since the world has been dramatically changed and like many Small Business owners you are trying to make ends meet or even survive this pandemic. Millions of Americans have either lost their jobs or are being furlough currently. The government stepped in and created the PPP and EIDL which by now most business owners should be aware of. However, what has transpired and become evident is that the many smaller business owners were not on the same playing field as others. The first go around had large lenders like your JP Morgan’s of the world lending out considerable loans of more than half a million dollars. Meaning? What about the “little guys.”
The second round of PPP loans which was authorized by Congress April 23rd, added $310 billion additionally for the PPP, and there will be a greater focus this time around, on the smaller businesses. The average loan approval this second time around has been considerably smaller than the first which has been averaged at about $79,000 which is about a third of the size of first round of funding. The SBA program set a new rule that disables lenders from submitting if their assets are greater than $1 billion, to allow much smaller businesses to have a stronger chance.
There has been plenty of talk recently about another wave of PPP as well as yet another program called the Main Street funding which would have $600 Billion to additional businesses who have been hurt by the Corona Virus. Given that things change on a daily basis, it is important to stay as locked in as possible to any new updates coming from Washington.
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