In Meridian, many small businesses once again able to receive some financial relief, thanks to loans given through the Paycheck Protection Program. The program has been extended, giving businesses a second chance to apply for the forgivable loans.
The recently passed COVID-19 relief bill allocates $284 billion for small business loans.
Banks are preparing to accept Paycheck Protection Program (PPP) loan applications from small businesses, as soon as the US Small Business Administration (SBA) announces when they will begin accepting new applications.
Businesses that received a loan in the first round are eligible to receive a second loan.
For small businesses to qualify for a loan, they must not have more than 3-hundred employees, and the business must have been operating before February 2020.
Citizens National Bank’s Meridian Regional President, Neil Henry, told Twin States News what local small business owners can expect when seeking a PPP loan in this second round.
“The second round of PPP funds will be a little bit different from the first round, it will be a little bit more hoops to jump through, but we’ll make it as easy as possible. The main thing that they need to look for is a comparative quarter to quarter reduction in sales revenues of 25 percent,” said Neil Henry.
Also giving insight on what small businesses who receive loans can expect when applying for loan forgiveness.
“It will be similar to the original process on the forgiveness. Obviously, they’re still a lot of unknowns out there for some of the criteria of loan sizes, but for the most part, we’ve had success getting a lot of our loans forgiven for our customers, it will be again, -- you can select an 8-24 week period and that does allow a little bit more availability to get those loans forgiven,” said Henry.
The SBA has a list of lenders participating in the paycheck protection program by state, for small businesses to apply through.
Article provided by Twin States News on January 5, 2021.