Congress Extends Paycheck Protection Program By 5 Weeks
The U.S. Congress just passed a bipartisan bill to extend the Paycheck Protection Program (PPP) until August 8. The five-week extension gives small businesses and nonprofits additional time to tap into the remaining $130 billion in PPP funds.
The program has been modified a number of times since it was introduced in late March to make it more business-friendly. Since the launch, Congress has relaxed eligibility rules and requirements for loan forgiveness, reduced the amount of the loan that must be used on payroll expenses to 60% and given borrowers 24 weeks (instead of only 8) to use the funds.
Connecticut companies have continued to outpace most other states in PPP funding. As of last week, approximately 58,000 PPP loans – worth over $6.6 billion – had been approved for organizations in the state.
The SBA website has more information, as well as a tool to help you connect with lenders still issuing PPP loans.
State & Federal:
Paycheck Protection Program (PPP): The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Click here for details.
If you received a PPP loan, you must complete the PPP Forgiveness Application and submit it to your lender to have the loan fully forgiven. You may begin submitting your forgiveness application beginning July 1, 2020. Click here for the loan forgiveness application.
Main Street Lending Program: The Federal Reserve Bank of Boston operates the Main Street Lending Program. The MSLP is a Federal Reserve program designed to help credit flow to small and medium-sized eligible businesses that were in sound financial condition before the COVID-19 pandemic, and that were either unable to access the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) or that require additional financial support after receiving a PPP loan. Importantly, MSLP loans (as opposed to PPP loans) are not forgivable. Click here for more information.
PPE & Cleaning Suppliers List: The CT DECD has compiled a downloadable list of suppliers (both in-state and beyond) to assist business owners with obtaining cleaning supplies, PPE equipment, plexiglass barrier materials and more. Click here for more information.
Unemployment Benefits: Workers directly impacted by the coronavirus pandemic no longer must be actively searching for work and employers who are furloughing workers can use the Department of Labor’s shared work program, which allows businesses to reduce working hours and have those wages supplemented with unemployment insurance. Self-employed individuals, including independent contractors and “gig” workers, can also apply for unemployment benefits. Click here for details.
Women’s Business Development Council (WBDC): The WBDC is converting its entrepreneurial programs and business counseling to virtual classrooms via Zoom or on-demand webinars. You can find all the information you need on the website, https://ctwbdc.org. WBDC is also prepared to assist clients who will apply for the SBA Small Business Disaster Relief Loan. Please contact us at firstname.lastname@example.org
Small Business Support:
Connecticut Small Business Development Center (CTSBDC): The center has 14 Business Advisors available to assist with the SBA Economic Injury Disaster Loan application. Advisors provide no-cost, confidential assistance with forecasting loss, explaining impacting, reviewing statements, and discussing other loan and assistance options. CTSBDC continues to offer online training courses and assistance with business plans, marketing strategies, and market research. Click here to visit CTSBDC’s COVID-19 Resource Center.