Earlier this week, we asked on Instagram: Have you applied for paycheck protection — or a PPP Loan — from the small business administration? We want to hear about your experience. If you have questions, we want to see those too.
Marshall S. wrote — “What is that? I’ve heard people talking about it.”
So first, here’s some info. The federal stimulus bill known as the CARES Act —which was passed by Congress and signed by the President on March 27 — includes $349 billion for loans issued through the Small Business Administration (SBA) under the Payroll Protection Program (PPP). As of yesterday, the Treasury was reporting that 1.3 million loans have been approved, totalling approximately $296 billion in relief.
The PPP loans provide small businesses with emergency funds to pay rent and utilities + keep employees on payroll. Bonus: loan repayments are deferred for six months and can be forgiven if all company workers are maintained at the same wages for at least eight weeks.
As of this week, the Triangle Business Journal reported that ~23,800 PPP loans have been approved in NC, totalling about $5.7 billion. (Click here to see which industries are getting the most assistance.)
One Raleigh business owner — Rusty Sutton, of The Green Monkey bar and shop on Hillsborough Street — announced yesterday that he applied for and received a PPP loan within days through locally-based Fidelity Bank. The loan will help him cover this month’s rent, pay back wages, and cover payroll through June so employees can come back to work.
Larger lenders in NC, such as Wells Fargo and Bank of America, have reported hundreds of thousands of loan applications received across the state, which has slowed down processing times. A list of all SBA lenders serving NC small businesses can be found here + click here to read a statement from the NC Bankers Association.
As distributed funds approach the initial cap implemented by Congress last month, federal lawmakers are proposing extensions and expansions that will offer additional funding for small businesses who have not yet received relief.
In addition, the NC House of Representatives is drafting legislation to be presented when the General Assembly reconvenes April 28 — that bill would introduce $25 million to a bridge loan program for small businesses across the state.
The SBA also implemented the Economic Injury Disaster Loan to help small businesses recover some loss of revenue + approved funds under that program are intended to be distributed quickly upon acceptance and approval of application.
How can we help small businesses during this time? We’re listening — email us with your stories, questions, comments + suggestions.