First tranche of Paycheck Protection Program announced in late March ran out quickly. There were several issues faced by small businesses in availing the loans and the federal government has heard some of those complaints and tried to fix it in the second round of PPP.
Even the second round of additional $310 billion is expected to run out of money but don’t let that prevent you from applying for a loan if you need one.
Key stats from first round:
- Total size: $350 billion
- Median loan size: $80,250
- Median processing time: 10 days
When to apply?
Second round of PPP has gone live today, April 27. Apply Soon!
How to apply?
Best to apply via your primary bank which will likely be a SBA lender. Small regional banks and credit unions did a better job in processing first round applications as compared to larger banks such as Chase and Wells Fargo and likely continue to do so in the second round as well. Some online lenders and Fintech companies, including PayPal, are also accepting PPP applications.
Terms remain broadly similar and we would strongly encourage you to apply. However, this is not financial advice and we suggest you to consult with your tax and accounts adviser.
Prodigal is committed to help its partners in Collections and ARM industry to navigate the current coronavirus pandemic as smoothly as possible. This blog is the fourth post in our series of educational posts and resources for the ARM industry to benefit from the economic assistance loan programs from SBA. Sign up here to keep yourself updated.