Update as of August 11, 1:00pm, ET: The PPP Application has closed and Congress is currently negotiating the next financial relief package. In meantime, the president has signed two executive memos that may affect you and your team.
Read Gusto’s analysis:
As new developments unfold, we’ll keep you updated.
On July 4, 2020, President Trump signed the Paycheck Protection Program extension bill, giving small business owners another five weeks to apply for a PPP loan (through August 8th). While more than 4.8 million business owners have taken advantage of the PPP, many still haven’t applied.
If you are considering applying but haven’t taken the leap, here are a few things you should know:
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- Over $130 billion remains in the PPP fund.
- If you applied but haven’t heard back, you can apply with another lender. At this point, you can’t use multiple loans (although that may change), but you can apply through multiple vendors.
- If you applied for a loan and got rejected, you may want to consider applying again with a different lender. Talk to your lender to understand why you were rejected; if there was an error in your application, fix it. But, if you were denied because of eligibility requirements, you can try elsewhere.
- If you received your PPP loan but sent it back, you can apply again.
- If you don’t have a relationship with a large, established bank, be aware of the following:
- Many banks are now considering lending to non-bank customers; don’t assume just because you haven’t used a bank before, your application won’t be considered.
- Credit unions, non-bank lenders, small, community banks, and FinTech organizations are offering PPP loans; find options here.
- Here’s an updated guide on how to spend your loan to remain eligible for forgiveness.
- Applying for the PPP loan is easier than ever—thanks to a streamlined and simple EZ application.
- Democrats have proposed that businesses with fewer than 100 employees be allowed to take out a second loan. Keep in mind: This has not yet been approved, but the idea is being considered.