The Small Business Administration’s Payroll Protection Program resumed accepting loan applications Monday after Congress passed and the president signed legislation last week replenishing the funds in the PPP, which ran out of money on April 16. Alabama Gov. Kay Ivey urged Alabama small businesses to quickly take advantage of the program.
“Alabama small businesses are the lifeblood of our state’s economy, and I am grateful to the Small Business Administration and the federal government for offering them a critical lifeline during these uncertain times,” Ivey said. “The Paycheck Protection Program has been an effective tool for us in Alabama, and I am proud that the SBA is once again accepting PPP applications. As we work to gradually phase back in our business operations, I urge all small businesses to quickly take advantage of this assistance and to contact your banking institution or financial planner today.”
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive the loan if all employees are kept on the payroll for eight weeks and the money is used for payroll and overhead — rent, mortgage interest, or utilities.
Small businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
The PPP was part of the $2 trillion CARES Act, which Congress passed to help the nation deal with the ongoing forced economic shutdown to slow the spread of the coronavirus, SARS-CoV-2, which causes COVID-19. Thousands of small businesses have been ordered closed by Governors across the country for weeks to try to fight the global pandemic. The PPP was to help the business community, but so many applied for the program that it soon exhausted its funding.
Ivey has placed the people of Alabama under a shelter in place order through April 30 and has ordered restaurant dining rooms, gyms, tattoo parlors, massage parlors, furniture stores, book stores, tanning salons, beaches, athletic facilities, bars, night clubs, salons, movie theaters, concert halls, and other nonessential businesses closed.
A phased reopening of the economy could begin as early as May 1.
Ivey is expected to announce her plan for reopening the economy within days following the guidelines released by President Donald Trump and the White House Coronavirus Task Force.
Georgia Gov. Brian Kemp reopened restaurant dining rooms, massage parlors, barbershops, etc. on Monday with restrictions, including mask requirements and social distancing. As of press time 56,019 Americans have died from COVID-18, over 50,000 this month alone, with total confirmed cases nearing 1 million.
For more information on the SBA program go to their website.