Small Business Owners: Here’s What You Can Expect from the Next Round of PPP

Photo by Kelly Sikkema on Unsplash

After a year of heartache, worry, and sleepless nights for so many small business owners, more relief is finally on the way. Congress has allocated $285 billion to reopen the Paycheck Protection Program (PPP). Though it took months of political bickering, politicians have put the needs of America’s small businesses into a compromise that will get much-needed capital into the hands of business owners.

Fortunately, in this new round of PPP, there are provisions designed to help the smallest businesses and the ones struggling the most. Here’s what you need to be aware of as a small business owner getting ready to apply:

• You can get a second PPP loan if you have fewer than 300 employees and can show a revenue reduction of 25% during the first, second, or third quarter of 2020 relative to the same quarter in 2019.
• Your PPP expenses are now tax-deductible.
• You’ll have an easier time applying for forgiveness with the new simplified application for loans under $150,000.
• For business owners hit hardest by the pandemic, including restauranteurs, live venue operators, and hoteliers, you can apply for 3.5x your monthly payroll.
• If you own a live event venue or production company that has been forced to close, you may be eligible for a special grant.
• If you’re a solopreneur or run a very small business, you should know that lender reimbursement economics are different this time around. This will help ensure your application receives the attention it deserves.
• If you’re a minority business owner, you’ll have access to $12 billion set aside specifically for underserved businesses.

Importantly, Congress increased the reimbursement amount to lenders on loans less than $50,000 so that lenders have incentive to prioritize the smallest of small businesses. To me, this may be the most important change; I’m glad to see America’s underserved and smallest businesses finally receive the attention they need during these moments of survival.

Small business owners can apply directly through Lendio and be connected with one of five pre-approved lenders in Lendio’s extensive loan marketplace, with an online infrastructure that has optimized every aspect of the process. To date, Lendio has facilitated more than $8 billion in PPP loan approvals for more than 100,000 small business owners across the country. While the SBA has not yet announced the official reopening date of the PPP, it is anticipated the program will reopen sometime in the next couple of weeks.

PPP funds have proven to be a virtual lifeline, preserving millions of jobs around the country. I anticipate demand for the next round of PPP loans will be greater than ever. As such, the Lendio team has been working to prepare and improve upon the technology we created to match small businesses with trusted, SBA-approved lenders. We are hiring over 500 new team members to make sure we are prepared to help as many small business owners as possible access PPP funds quickly and efficiently in order to save their American dream.