Small Business Loan Applications Restart Monday
Earlier this week, the Senate approved a new relief package worth roughly $484 billion. The House approved it acoupel of days later and now President Donald Trump signed it into law Friday. The bulk of the package will go towards funding the now depleted loan program for distressed small businesses. It will also provide funds for hospitals and coronavirus testing.
The extremely popular Paycheck Protection Program small business rescue will restart on Monday, less than two weeks after its funds were exhausted. The new bill will replenished it with another $320 billion in new money. The U.S. Small Business Administration announced that Round Two of the Paycheck Protection Protection will launch at 10:30 a.m. ET Monday, April 27.
“The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans,” Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said in a statement. “With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief.”
Officials are discouraging big businesses from seeking loans this round. This comes after a big backlash when it was revealed that Shake Shack and Ruth’s Hospitality, and many more companies received millions in aid. Some of these companies have already said they will return the loans. These returned loans are expected to provide more funding for the second round.
But it is expected that funds will run out quickly again. Banks still have applications that didn’t get submitted in time for the first round of funding, and many more applications are expected to roll in on Monday. Hopefully applications will be smoother this time around, now that banks know what to expect.