Amata Highlights Paycheck Protection Program Options
Washington, D.C. – Tuesday, Congresswoman Uifaatali Amata is highlighting the return of the Paycheck Protection Program (PPP) and the program's capacity to help small businesses weather economic concerns from COVID-19. PPP was the larger of two Small Business Administration (SBA) programs, along with EIDL, that provided low interest loans, forgivable loans, or emergency advances. Congress has directed the SBA to put emphasis on smaller businesses and minority-owned businesses, and broadened terms that make the loans forgivable.
"These SBA programs put over $24 million into our local economy in 2020," Amata said. "Our businesses needed assistance in the absence of the typical traffic in our harbor and airport, reduced hours, and other challenges. These funds can make the difference in a small business staying afloat and being able to pay employees. I'm pleased we're able to start 2021 with these loan options coming back to help again."
Congress renewed PPP at the end of the 116th Congress, and the SBA portal opened on Monday morning. This initial time is reserved for those who did not already secure a PPP loan last year (known as First Draw PPP loans). The legislation specifically provides for the possibility of second draw loans, available in a few days, according to the SBA.
First draw loans are eligible to apply for forgiveness if the employer maintains their level of employees and their compensation levels, spends at least 60 percent of the loan on payroll, and otherwise uses the loan for eligible costs.
"If your small business didn't seek a loan last year, but you need one now, the front of the line is meant for you," Amata said. "It's important to know the terms of qualifying for loan forgiveness as well as the loan itself, so be sure to talk to the lender about it, along with keeping and paying employees. Second draw loans are also expected to be available within a few days."
The SBA is opening the process to second draw loans in steps, depending on the status of the lending institution. January 13 is officially the first day some places can begin applying for second draw loans, with these options becoming more widely available over the next week. Learn more at www.sba.gov/ppp.
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