By Conrad Dudderar
The second round of the federal government’s Payroll Protection Act (PPP) has been extended, and Yukon business owners were urged this week to take advantage of the loan program.
Some $284 billion has been set aside in the 2021 PPP, and loans are forgiven if borrowers demonstrate a need and meet certain requirements.
Heidi Cantrell, a vice president at BancFirst, told Yukon businesses they can cover 2-1/2 months of payroll.
“We want to get those dollars in this round in the hands of people like you who really need it,” said Cantrell, guest speaker at an April 8th Yukon Chamber of Commerce luncheon.
PPP is the largest government-sponsored community development project to put “money in your pocket to pay the employees in your business,” the speaker added.
Cantrell explained the original March 31 round-two deadline has been extended to May 31.
It typically doesn’t take long for borrowers to receive funds after banks process their PPP loan applications.
“Two to three days is common,” Cantrell told local business leaders.
There is speculation that funding may run out by the end of this month, Cantrell advised the luncheon audience inside the 10 West Main event center.
“We don’t know when the dollars will run out,” she said, matter-of-factly.
There are two funding types in this second round – first-draw loans for new borrowers and second-draw loans for those who participated in the 2020 PPP.
First-draw loans up to $2.5 million are for businesses with 500 or fewer employees. Second-draw loans – capped at $2 million – are for businesses with 300 or fewer employees.
Businesses and 501c6 membership-based nonprofit organizations with payroll may apply.
Independent contractors should apply for PPP loans on their own.
60% FOR PAYROLL
Speaker Cantrell emphasized new borrowers do not have to repay the five-year, 1% interest loans – as long as they follow certain conditions.
She explained PPP funds may be used for payroll, most interest costs, rent, and utilities. At least 60% of the loan must go toward payroll.
To be eligible for the second round of PPP money, borrowers have to demonstrate a 25% reduction in gross receipts in comparable quarters in 2019 and 2020 – or a 25% annual reduction.
Banks have been working with businesses since the first PPP round in summer 2020, the result of mandated shutdowns caused by the COVID-19 pandemic.
“It’s been an interesting year,” Cantrell told the luncheon crowd. “But we’ve been blessed because the BBB came out, and now we have the vaccine.”
The original program was funded at $349 billion to support businesses with 500 or fewer employees, non-profits, sole proprietorships, and independent contractors.
The program was not without hiccups, as several large corporations (including the Los Angeles Lakers) mistakenly were initially awarded copious quantities of PPP funding.
Among announcements at the April 8th chamber luncheon:
- Past H.B. Frank Citizen of the Year Cherie Logan talked about the April 30th Yukon Chamber “Roundup” gala outside the Co-op building on the north side of Main Street. The program will feature an annual awards presentation, chuckwagon meal, silent and live auctions, and entertainment by fiddler Kyle Dillingham.
- Yukon Mayor Shelli Selby advised the audience to mark their calendars for the Mayor’s prayer breakfast set Friday, April 23 at the Dale Robertson Center, 1200 Lakeshore. “We will socially distance, but no masks are required,” Selby noted. Speaker will be Mike Fina from the Oklahoma Municipal League.