11 Jan PPP Reopens For Businesses Serviced By Small Community Lenders
A woman exits a business in a face mask Friday, Nov. 13, 2020, in Stoughton, Wis. Angela Major/WPR
The federal Paycheck Protection Program (PPP) reopened Monday with businesses and nonprofits serviced by small and minority-owned lenders getting the first chance to apply for loans, according to the U.S. Small Business Administration (SBA), which administers the program.
Starting Monday, community financial institutions will offer PPP loans to businesses who haven’t yet received assistance under the program. On Wednesday, the same small lenders will offer “second draw” loans to businesses who have already received a previous PPP loan.
David Latona is president of the Milwaukee Economic Development Corporation, a small not-for-profit lender. Latona said they are working through some of the latest guidance from SBA, but expect to be able to start processing PPP loan applications from clients by the end of the week.
Latona said it’s difficult to estimate how high demand will be for loans this time around, but he said it’s been really challenging for businesses to not know when they won’t need aid anymore.
“You’re taking on debt in some way shape or form and that’s always, for any business owner, that’s something to be nervous about,” Latona said. “You can’t borrow yourself out of a bad situation.”
SBA Regional Administrator Robert Scott estimated the program would be open to all other businesses by Jan. 18 – 19. He said he expects demand will continue to be high for loans, but he doesn’t think the application process will be the “mad dash to cash” it was when the program first launched.