On Monday, the SBA launched $310 billion in fresh Paycheck Protection Program funds. Under the PPP, companies and nonprofits with fewer than 500 workers can apply for loans of up to $10 million at 1% interest to cover two months of payroll and overhead expenses. If the borrower retains workers and doesn’t cut their wages, the government will forgive most or all of the loan and repay the bank lenders.
What’s Included in Round Two?
$310 billion for the SBA Paycheck Protection Program, including $60 billion allocated for smaller lenders such as community banks and credit unions.
$60 billion for the SBA’s Economic Injury Disaster Loan (EIDL) program, with $10 billion allocated for grants.
Hurry though! Despite the fresh round of funds, round two has already had some bumps,
including a crash of the SBA’s E-Tran system. In an attempt to prevent future system crashes, the SBA informed banks that it would limit the number of applications they can submit per hour, in order to allow all banks access to the program.
According to Bank of America CEO Brian Moynihan, on Sunday his bank had $50 billion in
applications ready for the second round of PPP funds and JPMorgan Chase said they had 150,000 applications ready to go, with thousands more in the pipeline. If the crash and these staggering Bank of America and Chase stats are any foreshadowing of the number of round two applicants, it’s no surprise that experts from the Consumer Bankers Association are already warning that the demand could deplete the program again in just four days.
Don’t wait to apply! To apply, download the Lendtek mobile app in the Google Play and Apple app stores, sign-up or log into an existing account, click "CARES Act", and complete the PPP application. If you don't have access to the Lendtek mobile app, you can still apply for the PPP application on your desktop HERE. However, you will still need to download the Lendtek mobile app to track the status of your loan.
Together, we can get your small business funded!