It is going to be a serious race next time once house approves $310billion additional funding.
https://www.wsj.com/articles/what-small-business-owners-need-to-know-about-the-new-stimulus-bill-11587576759?mod=searchresults&page=1&pos=2
What Small Business Owners Need to Know About the New Stimulus Bill
Small business owners can prepare for the resumption of the Paycheck Protection Program by getting their paperwork to their lenders as soon as possible
Congressional leaders reached an agreement with the White House on Tuesday for the relief bill to aid small-business owners. The bill, which includes a $310 billion refresh of the Paycheck Protection Program, has now been sent to the House for approval.
Here are answers to some of the most common questions about the future of the PPP program and alternative financing.
What’s happening with the Paycheck Protection Program?
The initial $350 billion for the PPP was designed to help small businesses cover payroll and other costs during the coronavirus pandemic. The program was exhausted as of April 16.
Lawmakers are now seeking to approve $484 billion to be allocated to small businesses, including $310 billion for the PPP program. House approval is expected Thursday.
I was approved for a PPP loan. Will I still get funding? How long will it take?
If you were approved and received confirmation from your lender, you can expect to receive PPP funds in around seven to 10 days. If you think you were approved, but didn’t receive any form of confirmation from your lender, it’s likely that you won’t receive a loan from the first $350 billion Congress put aside for this program.
The Wall Street Journal’s Jon Hilsenrath, Ruth Simon and Sarah Chaney discussed the federal government’s small business loan program and the historic spike in unemployment claims on April 10.
Many bank clients believe they’ve been approved, but weren’t. The best way for a business owner to check whether or not they’ve been approved is to follow up directly with their lender. Many lenders have been proactive in updating their clients, and are planning to submit applications that weren’t approved by the SBA before the funding initially ran out.
How can I apply for the new round of PPP funds?
According to the SBA, lender enrollment and new loan applications aren’t being accepted at this time. Once the new bill is signed into law, the SBA is expected to announce when it will take applications for PPP again.
While waiting for PPP funding to resume, businesses should collect all required documentation for the program and send it to their bank lender. This enables the bank to prepare for submitting a client’s application as soon as the program opens again.
Tony Wilkinson, president and CEO of the National Association of Government Guaranteed Lenders, said that he expects funding to once again be gone in as quickly as a week.
“Lenders will be hitting the submit button on a significant number of applications as soon as it’s open,” he said.
If I applied to the first round of PPP, do I have to apply again?
Business owners don’t have to apply again if their application didn’t get approved in the first round. Many lenders have held on to these applications, and are prioritizing them in the pipeline for when the program opens up again.
How are lenders handling loans that didn’t get funded before the money ran out for the PPP?
Many lenders are continuing to process loans that didn’t get funded in the first round. They expect the process to move quickly when funds are available again.
Umpqua Bank, for example, has spent the past several days making sure small businesses have documentation and that their applications are completed and ready to go. The bank has had its teams working in shifts around the clock to get the high volume of applications completed.
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“Our goal is to have as many small-business applications ready to submit to the SBA as soon as it reopens the PPP application process,” said Tory Nixon, senior executive vice president and chief banking officer at Umpqua Bank.
While it isn’t too late for business owners who haven’t yet applied, there is incredibly high demand. Reach out to your lenders as soon as possible to inquire whether they have the capacity to process your application.
“With the next round, it’s really a race against the clock to help as many small businesses as possible before the funding is again fully committed, which could happen within just a few days,” said Mr. Nixon.