Lubbock Restauranteur speaks on Payroll Protection Program as new round opens Monday
LUBBOCK, Texas (KCBD) - The U.S. Small Business Association and Treasury Department announced another round of the Payroll Protection Program to open Monday, January 11 for new borrowers and “certain existing PPP borrowers.” Many businesses around the country including here in Lubbock plan on taking advantage of it so they can continue to pay their employees.
The program will open to lenders shortly after Wednesday, the two organizations revealed.
The guidelines were updated to give more opportunities for those who apply.
Up to 284 billion dollars will go towards nationwide businesses to keep their employees on payroll through the end of March.
Lisa West, the owner of Spanky’s on University Avenue and Double Nickel on Slide Road, plans on applying again after a successful opportunity receiving funds back during the beginning of the pandemic.
“It was a game changer. It was a difficult time. So many unknowns. We were able to pay all of our employees the entire time. "
“We were concerned of keeping our staff on because it’s a big responsibility I take really seriously. A lot of people depend on how I run my operations to make their living so I take that pretty personally. We were thinking about everything from rent to utilities. There were so many dynamics and it was also a moving target. I mean they changed it so many times throughout the process. But if you don’t apply, you may not have 100 percent forgiveness. And I’m hoping this round, they will have it a little bit smoother.”
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”
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