Round two for the SBA’s Paycheck Protection Program is underway and local preferred lenders are reporting slower traffic than round one.
The PPP program officially resumed on Jan. 11 with a few changes to the previous qualification format. Now, in order to qualify, second-time applicants must show a 25 percent decrease in revenue due to the COVID-19 pandemic.
First-time applicants are not required to provide the same documentation. KVOE News recently reached out to two local lenders Lyon County State Bank and ESB Financial to gauge the volume of applications at this time.
Both LCSB President Brad Yount and ESB Chief Lending Officer Michael Black report that the traffic is much slower than the previous round of funding. Black believes this has to do, at least in part, with the new lending qualifications.
Yount agrees and adds that many business owners are being advised to hold off on applying, at least for the time being.
Even once the program concluded last year due to all funds being used up, local lenders continued to encourage businesses to send in their applications. Black says that was a major benefit when it came to processing the second round of applications recently.
The program allows companies with up to 500 employees to receive a low-interest loan to cover up to two months of payroll and additional expenses.
The loan can be forgiven and essentially converted into a grant at the end of the two-months so long as each business meets certain loan criteria. For more information or to inquire about applying for the PPP program contact your local lendor.
