The federal government’s Paycheck Protection Program (PPP) reopened Monday, allowing small businesses in Alabama to apply for loans to keep themselves afloat during the economic effects of the coronavirus pandemic.
The program had been closed after exhausting its initial supply of money, and the reopening was delayed due to congressional infighting.
The program now has $310 billion in its replenished coffers, with $60 billion of that set aside for smaller, community lenders in the hopes that the funds will be more accessible for the smallest of America’s businesses.
During the program’s first run, 60% of America’s small business owners applied for a loan, but only 5% received what they had requested, according to a survey done by Lendingtree.
For the most part, the same preconditions remain from the first version of the program. Companies can get loans for 2.5 times the cost of a normal month’s payroll, with a cap of $10 million.
The loans are forgivable if certain conditions are met; for instance, 75% of the money granted must be used on payroll, rent and utilities to qualify for forgiveness.
“The Paycheck Protection Program has been an effective tool for us in Alabama, and I am proud that the SBA is once again accepting PPP applications. As we work to gradually phase back in our business operations, I urge all small businesses to quickly take advantage of this assistance and to contact your banking institution or financial planner today,” said Alabama Governor Kay Ivey in a statement on Monday.
Alabama business owners looking to apply can go here.
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: [email protected] or on Twitter @HenryThornton95
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