The latest $900 billion coronavirus relief bill – the one with those much anticipated $600 stimulus checks — includes a second round of funding for the Paycheck Protection Program (PPP), which saved thousands of jobs earlier on in the pandemic with its forgivable loans. Specifically, there’s $284 billion to be dished out in PPP funds, and if you’re eager to get a piece of that action, here’s what you need to know.
During the first round of PPP loans, the application process was utterly chaotic. Countless small businesses found themselves scrambling for loans, overloading banks‘ application systems and causing panic. This time around, the Small Business Administration (SBA) and Treasury Department are (thankfully) doing things differently. On Jan. 11, community banks and credit unions will be able to start accepting PPP loan applications. But businesses that plan to apply with larger banks and lending institutions will need to wait. As of this writing, there’s no set date for when those applications can be submitted. You may actually be better off applying for a PPP loan with a community bank — even if it’s an institution you don’t have an existing relationship with.