Here’s how to apply and who is eligible
The deadline to apply for the Small Business Paycheck Protection Program is approaching.
March 31 is the last day to apply for the low-interest loan guaranteed by the Small Business Administration, unless U.S. Senate lawmakers send a bill to the White House, extending the deadline by two months. ; On Tuesday, the 2021 PPP extension law was passed by the House by 415 votes to 3.
Regardless, companies can always apply before the March deadline. Employers with 500 or fewer employees are eligible for loans of up to $ 10 million. Eligible individuals include tribal businesses, nonprofits, freelancers, independent contractors, sole proprietors, and nonprofit veterans organizations. Those who received a loan are eligible for a second loan up to $ 2 million.
Small business owners can use it to cover employee salary expenses, mortgage, rent or lease, and utilities.
Next, business owners will need to find a lender. Applicants should describe their needs by completing a short questionnaire through the SBA’s Lender Match program that determines a business owner’s eligibility. Within two days, the applicant’s local lenders will send an email to review the fees, rates and terms of the loan. Once the administrative formalities have been completed, applicants can apply for their loan.
The PPP was adopted as part of the CARES law in March 2020 to mitigate the economic blow inflicted by the onset of the COVID-19 pandemic. For small businesses in El Paso, this has allowed many to rehire staff on leave. Cindy Ramos-Davidson, chief executive of the El Paso Hispanic Chamber of Commerce, said it would be good for business for Congress to extend the P3 deadline.
“The end result is that money is king. Money is the silver bullet right now for all businesses, especially El Paso businesses that have reached that 50% openness level and haven’t not increased like some of the others, “said Ramos-Davidson, referring to the decision of some companies to operate at limited capacity despite Governor Greg Abbott recently lifted Texas interior restrictions among other COVID-19 guidelines.
For those who need help navigating their business with COVID assistance, Ramos-Davidson said his staff are available to help in person or over the phone.
“We need to provide our businesses with relevant, quality information to survive and thrive – and that’s what we do,” said Ramos-Davidson.