On December 27, 2020, Congress passed a new round of the Paycheck Protection Program (PPP) funding which allocated $285.B to assist businesses impacted by the coronavirus. Loans are available through March 31, 2021 or until the allocated funds are exhausted.
As a further incentive, the US Small Business Administration (SBA) opened the window to small businesses, disadvantaged businesses, and new borrowers to start applying on January 11, 2021- a few days earlier than the general enrollment period.
Although these are steps in the right direction, the reality is some of the neediest businesses may still not be able to obtain these funds for reasons linked to the inadequacy of their internal financial management systems, lack of prior banking relationships with lenders and distrust of the program stemming from prior denials of access to funding.
The SBA is now in the latest round of PPP funds and many small businesses were shut out of the earlier programs by large businesses who ironically were better positioned to weather the challenges and revenue shortfalls than small businesses who were over concentrated in food service, hospitality and service industries.
Information regarding the current round of PPP funding can be found at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program. Urgency is key to taking advantage of this new round of PPP.