Deadline approaching for PPP applications

By R. Hans Miller | Times Senior Reporter
Posted 6/14/20

Those business owners wishing to apply for the Paycheck Protection Program should make sure they apply by June 20 according to a statement released by Valerie Maher, lead economic development …

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Deadline approaching for PPP applications

Posted

Those business owners wishing to apply for the Paycheck Protection Program should make sure they apply by June 20 according to a statement released by Valerie Maher, lead economic development specialist for the Houston office of the U.S. Small Business Administration. The PPP is a loan program offered by the SBA that allows small businesses to obtain loans to maintain staffing as well as pay rent, mortgage interest and utility expenses, according to the SBA’s website.

“Time is quickly running out for small business owners to apply for the (PPP) with local SBA Lenders,” Maher said. “We want to be sure you take advantage of the remaining $125 (billion) available to support small businesses, and I recommend your application be submitted to the lender of your choice by June 20 to allow plenty of time for approval by June 30.”

June 30 is the firm deadline for the program and loan applications take some time, Maher said in her statement. While regular changes have occurred to the application process for the PPP, Maher said new rules and guidance have been released that make the application process more flexible and more manageable for business owners.

Loans may be forgiven if borrowers meet the guidelines provided by the SBA, the announcement said.

According to the SBA statement, changes to the PPP include:

  • Borrowers may now apply for five-year loans rather than two-year loans.
  • The timeframe for PPP protection has been extended from and end date of June 30 to an end date of Dec. 31.
  • PPP funding has been increased from a maximum of eight weeks to a maximum of 24 weeks.
  • Rehire requirements for staffing is less stringent, providing the business owners can show they have not been able to return to the same level of business activity because of federal COVID-19 requirements pertaining to social distancing, sanitation and worker safety.
  • A guideline with a sixty-forty split has been established which allows employers to use 60% of funding for payroll with the remaining 40% going toward debt obligations.
  • Extends the deferment period for loans retroactively until the amount of forgiveness is remitted to the borrower by the lender (the deferment period ends for all borrowers 10 months after the end of the covered period).
  • The PPP delays the payment of payroll taxes for PPP borrowers until Jan. 1, 2021.

According to the SBA website, borrowers must apply for a loan through existing SBA 7(a) lenders or through a federally insured depository institution or credit union or a Farm Credit System institution that is participating in the program. A list of participating lenders is available at www.sba.gov/ppp.

The SBA’s most recent report from May 30 on the PPP indicates that nearly 5,500 SBA-approved lenders have loaned about $186.3 billion to American companies since the PPP first began as a response to the COVID-19 pandemic’s impacts on the nation’s economy. Of that, about $40.2 billion has gone to Texas companies, placing the state second nationwide. California is at the top of the list with about $66.4 billion approved.

Education opportunities: 

The U.S. Small Business Administration’s Houston office will be offering webinars to help business owners understand the Paycheck Protection Program’s requirements. Participants can join in from June 15-19.

PPP Loan Forgiveness
11 a.m. 
Monday 06/15:  CLICK HERE
Wednesday 06/17:  CLICK HERE
Friday 06/19:  CLICK HERE

Paycheck Protection Program/EIDL Overview
PPP funds are still available, but program ends June 30th.  EIDL is open to agricultural businesses only.  Learn how to apply for a PPP loan and the basics of the program.
11 a.m.
Tuesday 06/16:  CLICK HERE
Thursday 06/18:  CLICK HERE 

Q&A with SBA Leadership (limited to 1st 30 participants)
SBA Leadership will answer your PPP and disaster recovery questions in this 30 min. daily interactive session.
Monday, June 15-Friday, June 19
10 a.m.
https://us04web.zoom.us/j/73163669195?pwd=dm9aQW80TWlaVHFmVWJnbUJveWJDQT09
ID: 731 6366 9195
Password:  9u37JG

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