From Staff Reports
The U.S Small Business Administration, in consultation with the Treasury Department, announced that the Paycheck Protection Program reopened the week of January 11 for new borrowers and certain existing PPP borrowers in second round3.
To promote access to capital, initially only community financial institutions were able to start applying for loans on Monday, January 11.
Local banks are now helping small businesses apply for the loans.
YNB Bank President Randy Wright said there are a lot of changes that have been made, and more are possible.
“They keep changing, it is not like the last round. And President Biden is coming out with another plan, It could change in two weeks again,” Wright said.
The latest round of PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
Carson Wright, Senior Vice-President at YNB Bank in Yukon, said the bank has been taking applications.
The SBA started accepting the PPP applications from banks on Friday, Jan. 15.
Carson Wright said there had been 30 applications ready from local small businesses by Friday.
“It is not nearly as much volume as we had last year but certainly we are seeing quite a bit there,” Carson Wright said.
A business must show a 25% loss for a quarter of the year to be eligible, Wright said.
After an application was taken last year, approval took about three business days before signing the paperwork to get the funds.
“We obviously hope we are able to do it as quickly this time around,” Carson Wright said.
“We hope to have the same turnaround or quicker than we had last year,” Carson Wright.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”
“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.”
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, destination marketing organizations, among other types of organizations;
To contact YNB Bank call (405) 354-5281 and ask for Nathan Taylor. People should be patient with their banker, Carson Wright said.
“We are all trying to get through this and we all want to help businesses and their employees as we work through this together,” Carson Wright said.
BancFirst loan officers in Yukon can be reached at (405) 354-3030 or at bancfirst.bank.