In March, the Senate passed the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act and on April 3, 2020 the Paycheck Protection Program (PPP) went into effect.
The Paycheck Protection Program (PPP) was originally a $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100% federally guaranteed loans. The program was then expanded by the Paycheck Protection Program and Health Care Enhancement Act in late April, adding an additional $310 billion in funding. Now, the PPP Flexibility Act has made important changes to the program by allowing for more time to spend the funds, and making it easier to get a loan fully forgiven.
According to a recent survey of 1,500 businesses that participated in a Goldman Sachs training program, 84% of small businesses will have used up their PPP loans by the first week in August. More disheartening is the fact that more than 60% of respondents said their revenue is still less than three-quarters of what it was before the pandemic.
With no end in sight for Coronavirus, where do small business owners turn? While Congress and banks try to settle on a new relief program, small business owners should look into alternative funding sources.
Traditional SBA loans can offer small business low-interest, low-risk relief. Learn more about SBA loans...