US President Joe Biden signs the Paycheque Protection Program (PPP) Extension Law of 2021 in March ... 30, 2021. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON / AFP via Images) AFP via Images
The Paycheque Protection Program has seen its ups and downs since its inception a year ago. An unfair rollout that, perhaps inadvertently, favored companies with deeper pockets and existing links to the financial sector has crowded out small stores. The rules were obscure and seemingly arbitrary. The first fund trap was exhausted almost immediately. When it was first deployed, the PPP looked like a government boondoggle designed to help the haves over those who have- not.
But a funny thing happened in the way of government ineptitude. government listened . The program has improved. PPP has been replenished with a second round of Eligibility conditions have been clarified More and more smaller and smaller banks have been included in the program The rules have been relaxed. deadline for the second round of funds has arrived, there was a lot of money left in the program.
This money returned to the treasury and helped fund the third round of the PPP, which remains open today With $ 284 billion in funding approved in December (plus an additional $ 7.25 billion added in March) and a focus on more equitable distribution of money to small businesses, especially to the minorities who need it most, the program has continued to achieve the vision for which it was designed.
The cancellation of loans has also been achieved.However, the vast majority of loans, those under $ 150,000, only required a forgiveness request. A number of useful articles and seminars have popped up to explain the process.
As of April 5, $ 68 million of funds in the current funding pool of $ 291 billion.
Prior to the May 31 extension, some larger had shut down the process for accepting new applications and there are warnings that the current round may soon run out of funds. Don't let that stop you. For businesses eligible for the loan, especially those that need less than $ 150,000 to fund payroll and related expenses, the PPP remains a boon to get small businesses through the next few months as vaccines aredeployed and life returns to normal.
The initial application process takes time, but not difficult. If you've ever paid your business taxes or applied for a mortgage, you'll be familiar with the types of financial documents needed to apply. Here are some things you will need to apply. Once the documents are assembled, the application is simple. The banks participating in the program have become experts in helping applicants overcome mercilessly low levels of red tape. You can apply in an afternoon.
For small businesses looking for funds, the process is much simpler. My business was able to apply in less than an hour and the funds were approved within a week.
The program still has money. The deadline has been extended to May 31. Congress has shown a willingness in the past to prolongr the program if small businesses request it. The government has created a program that is easy to understand, timely and well thought out. PPP is working. If you are a qualifying small business, it makes sense to take advantage of this.
More PPP coverage: embed-base -embed embed-4