All small business owners and lenders in Central New York are now able to apply for their first loan or another loan under the Paycheck Protection program, or PPP. Last week, the Small Business Administration granted access only to lenders serving primarily minority, women, and veteran-owned businesses who might have missed out on the initial launch.
Regional Director Bernard Paprocki says preference is given to first-time applicants.
"The second draw loans, eligible borrowers that previously received a PPP first draw loan may reapply for a second draw, but only up to $2 million in the same types of general terms of their first draw. The first draw loans are still good for up to $10 million."
Even now that the program will be open to all lenders and businesses, the SBA plans to have dedicated service hours for smaller lenders like community banks, credit unions, and farm credit institutions. Paprocki says they serve the businesses that are likely struggling the most.
"The hardest his businesses, especially the restaurant and accommodation sectors, this is an absolute lifeline. If you can keep your doors open, if you can pay your expenses, if you can pay your rent and your utilities, and that loan is totally forgiven, you have a fighting chance of coming out on the other end."
Just like many business owners, Paprocki understands that fraud was a key gripe with the initial launch of the PPP. This time around, he says the SBA will take more time to scrutinize applications.
"There's going to be a couple days wait in between the time a lender applies for an approval or a loan number and by the time the agency releases that loan approval so they can do a few more checks, be a little bit more careful to protect the borrower and the lender."
More information on the SBA's PPP program is here. The Small Business Development Center at Onondaga Community College is also available to help anyone with filling out the paperwork. Their website is here.
