What we know about new PPP loans for small businesses
Small businesses battling COVID-19 lockdown are getting another round of financial aid with the latest spending bill passed by Congress. Of the $ 900 billion approved for COVID-19 relief, $ 284 billion for the Salary Protection Program has been identified, with some changes, to qualify for this latest round of PPP funding, business owners must demonstrate: The company was in operation prior to February. From 2020 it has fewer than 300 employees, the total income must have decreased by 25 percent or more from any quarter in 2019 to 2020, the new loans will be tax exempt and people can apply even if they applied previously and obtained a loan from the partnership between Public and private sectors of the first round Non-profit organizations can now apply for a loan. “At this point, everything helps,” said Craig Taihara, head chef and owner of Binchoyaki. Takehara lost 75 percent of sales revenue due to the COVID-19 lockdown. His restaurant now lives up to checkout requests and Great Plates’ partnership with the state to feed elderly people in need. Takehara managed to take out a PPP loan last year, but not right away. He now works through the paperwork to get his loan forgiven, but even that, he says, is a complicated process. “We have no bank finance in the background, we don’t have investors, we just put all our own money,” said Takehara. “I think we hope to come first in this aspect.” Feelings echoed by Heather Wong from Sacramento All Spiceree. “There was a lot of frustration at how easy it was for the larger chains to get paid, and how they seemed to mock the spirit of the show,” Wong said. This is one reason why Takehara is cautiously optimistic about getting another loan. “I hope it isn’t that difficult this time,” said Takihara. Wong says she is skeptical about the second stimulus package, citing her experience applying for a loan the first time. “The whole process was filled with tension and anxiety,” Wong explained. “There were obstacles in the application process, things couldn’t be downloaded when we thought they could be loaded, and banks were putting things out at different times. They didn’t want to enter wrong information and deal with that.” Wong said her businesses might not even be eligible. For a second public-private partnership loan. Unlike many convenience stores during the pandemic, All Spicery experienced positive growth. New loans have a maximum of $ 2 million. The deadline to apply for this latest round of support is March 31.
Small businesses battling COVID-19 lockdown are getting another round of financial aid with the latest spending bill passed by Congress. Of the $ 900 billion approved for COVID-19 relief, $ 284 billion was identified for the Payroll Check Protection Program, with some changes.
To qualify for this latest round of PPP financing, business owners must demonstrate:
- The business was running before February of 2020
- It has less than 300 employees
- Total income should have decreased by 25 percent or more from any quarter in 2019 to 2020.
The new loans will be tax deductible and people can apply even if they previously applied and got the PPP loan from the first round. Non-profit organizations can now apply for a loan.
“At this point, everything helps,” said Craig Takehara, head chef and owner of Binchoyaki.
Takehara lost 75 percent of sales revenue due to the COVID-19 lockdown. His restaurant now lives on his takeout orders Wonderful dishes Partnership with the state to feed the elderly in need. Takehara managed to take out a PPP loan last year, but not right away. He now works through the paperwork to get his loan forgiven, but even that, he says, is a complicated process.
“We have no bank finance in the background, we don’t have investors, we just put all our own money,” said Takehara. “I think we hope to come first in this aspect.”
Sentiments echoed by Heather Wong from All the Spices of Sacramento.
“There were a lot of frustrations about how easy it was for the larger chains to get money, and how they seemed to mock the spirit of the show,” said Wong.
This is one reason why Takehara is cautiously optimistic about getting another loan.
“I hope it isn’t that difficult this time,” said Takihara.
Wong says she is skeptical about the second stimulus package, citing her experience applying for a loan the first time.
“The whole process was filled with tension and anxiety,” Wong explained. “There were obstacles in the application process, things couldn’t be downloaded when we thought they could be downloaded, and banks were putting things out at different times. They didn’t want to enter wrong information and deal with that.”
Wong said her businesses may not even qualify for the second public-private partnership loan. Unlike many convenience stores during the pandemic, All Spicery experienced positive growth.
New loans have a maximum of $ 2 million. The deadline to apply for this latest round of support is March 31.