The main driver of small business stimulus in the CARES Act is contained in the Paycheck Protection Program (PPP). The Payroll Protection Program provides forgivable, low-interest loans to small businesses to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills. A recent Denver Business Journal (DBJ) article lists what not to do if you are a small business and are wanting to qualify for PPP Loan Relief. Understanding what the PPP business loan program is, how it works, and how to apply will help you navigate this massive federal stimulus program and get the funds you need as quickly as possible.
Here are the SBA recommended steps to find a lender for the PPP program:
- Contact your current business bank first to see if they are participating in the PPP program
- If not participating in the PPP program, ask them to apply with the SBA and participate
- OR, if they have reached their limit, such as Wells Fargo, ask for a referral to a participating bank
- Also, some banks are assisting those with current SBA loans first and current clients first, which makes sense, but is not as helpful to new borrowers.
- Check the SBA site here: https://www.sba.gov/funding-programs/loans. Check back frequently as new banks and credit unions are applying to become approved lenders every day.