New Paycheck Protection Loans Coming
Alaska businesses will soon be able to apply for a second round of Paycheck Protection Plan loans. The Small Business Administration is working to set up the program, including a short seminar every Wednesday.
The second Coronavirus Relief Act passed by Congress in December, includes $284 billion more for businesses hurt in the pandemic. The basic idea remains the same – pass money to businesses so they can keep paying workers. But the bill has expanded eligibility for the loans to include nonprofits and live venues and cultural institutions which have been struggling due to pandemic-forced closures.
“I’m glad the second draw is coming around because we need it, again.”
Clark Bihag, the senior area manager for the Small Business Administration, says the SBA is being more methodical with the opening of this round of the Paycheck Protection Program.
“Businesses will soon get an opportunity to get a second draw of their PPP, but we are still waiting for SBA and Treasury to open up the application process.”
The money coming to Alaska will be disbursed soon through some local banks, (SBA says the following banks will be participating: First Bank, FNBA, Northrim, Mt McKinley, Wells Fargo Alaska USA and Denali State Bank) but for now, the Small Business Administration wants employers to get ready.
What the new loans cover has expanded.
“Payroll costs, interest and mortgage obligation, rent obligation and utiliy payments were the original forgiveable expenses. They added operations expenditures, property damage costs, supplier costs and worker protection expenditures to the list of forgivable expenses.”
Bihag has been offering an online question and answer sessions every Wednesday afternoon through the Alaska Small Business Development Center. Online registration is through their website: https://aksbdc.ecenterdirect.com/events/7865?_ga=2.146191986.717811121.1609779564-1527732530.1608155230 and we will post that link on the KUAC radio news page.
He says he wants people to understand the program and take advantage of it, because he gets a personal payback: “The satisfaction I get is talking to small businesses I’ve assisted in the first draw, they come back ‘oh yeah, we got our PPP loan approved!’ so, despite all the stress, the program worked, and people were able to keep their employees on payroll.”