In just four months last year, more than 5 million US businesses received a Paycheck Protection Program (PPP) loan. It helped them pay their workers, their mortgage or their rent and their utility bills. Unfortunately, many small businesses owned by minorities, women and veterans did not get PPP loans last year. We want to make sure you know how to apply for the financing your business really needs.
But we must act quickly. The PPP ends on March 31, but many lenders may stop accepting applications early in order to have time to process. This means you need to quickly start applying for P3 funds to help you with your salary costs and other bills, to get your fair share. The Small Business Administration (SBA) and participating lenders are working to make these loans accessible to more businesses in low and moderate income communities. And small businesses, such as hair salons, restaurants, nail salons, clothing brands, bars, bodegas and independent contractors.
Here are eight facts you need to know about PPP that may inspire you to apply:
1. Congress funded it with $ 284 billion for 2021. That’s enough for millions of additional loans.
2. This is for first-time borrowers. The SBA has already approved more than 704,000 loans for borrowers who did not get any last year. The SBA also approved loans for borrowers for the second time.
3. A PPP loan can be canceled. Up to 100% of your loan could be forfeited if you qualify and meet SBA requirements. This means that you will not have to repay the amount handed over.
4. Special attention is paid to companies with few employees. Until March 9, the SBA is only accepting applications from companies with fewer than 20 employees.
5. Most of the loans are relatively small. The average loan to PPP borrowers for the first time this year is $ 22,000, according to the SBA.
6. Small businesses are approved. 90% of Chase’s approved PPP loans in 2021 are for companies with less than 20 employees.
8. It is easy to find participating lenders. The ASB website – sba.gov/funding-programs/loans/lender-match – has a “Lender Match” link to help you connect with a lender near you.
The 2021 PPP is slated to expire on March 31, but to file your SBA application by then you need to act now. If you think you qualify, we encourage you to find a lender, prepare your information, and apply.
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Jennifer Roberts is CEO of Chase Business Banking and Sean ‘Diddy’ Combs is the founder of Our Fair Share, an entrepreneur and media mogul.