If you are a small business owner who has not applied for the Paycheck Protection Program (PPP) funding you can still do so. But you need to act now.
That is because the deadline for PPP applications is Tuesday, June 30. There was a whopping, more than $128 billion of funding not claimed based on loan approvals through June 20, data from the U.S. Small Business Administration shows. The federal agency runs the program working with the U.S. Treasury.
At the same time, it has not been determined if the PPP deadline for applications will be extended if money is left on the table.
Since being launched in early April in two rounds, the SBA has approved more than $514 billion in funding covering over 4.6 million loans. The latest average overall loan size was $114,000.
The PPP keeps small business employees on payroll by offering critical capital. The lending program for firms with up to 500 workers became law in late March as part of the $2 trillion coronavirus economic stimulus package. All told, the PPP was intended to provide more than $660 billion in PPP loans to help small businesses deal with the crushing blow of COVID-19.
“Eligible borrowers still have time to take advantage of these forgivable loans that aim to sustain business and keep employees on payroll,” SBA spokesperson Carol Wilkerson told Black Enterprise.
On June 19, the SBA launched an online tool for small businesses and nonprofits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Microlenders, as well as traditional smaller asset size lenders in the PPP.
The SBA’s Lender Match is an extra resource for pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders.
“The SBA is focused on assisting eligible borrowers in underserved and disadvantaged communities and connecting them with forgivable PPP loans, especially before the June 30, 2020, application deadline,” SBA Administrator Jovita Carranza said in a statement.
“As communities begin to carefully reopen across the country, there are still many more opportunities to provide this assistance to businesses who have yet to access these forgivable loans. SBA is utilizing these partnerships with CDFIs, MDIs, CDCs, Farm Credit System lenders, Microlenders and many other participating small asset lenders to ensure that access to this emergency funding reaches the most small businesses and their employees in need – a key priority for President Trump.”