A measly business owner in Chinatown, San Francisco
Time is ticking for the smallest companies to access the priority employment period for the Small Business Administration’s Paycheck Protection Program.
But these firms, along with small corporations of all sizes, will still be able to apply for forgivable loans outside of the priority window.
The 14-day priority window harbingered by the Biden-Harris administration last month ends at 5 p.m. ET today, March 9. During these two weeks, only professions with fewer than 20 employees could apply for forgivable loans through PPP, a special period direct at helping women and minority-owned businesses access funds.
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Even after this window closes, it liking still be possible for these businesses to apply for and receive funding through the program. While they may be competing with larger fasts for cash, lenders do not expect the program to run out of money before the March 31 expiration date.
This year, in the course March 7, the SBA had approved more than 2.4 million PPP loans totaling nearly $165 billion. That’s concerning 58% of the $284 billion allocated for the program when it was reopened in January.
“We might cross $200 billion, but I contemplate there’s still probably going to be $50 to $75 billion left,” said Sam Sidhu, chief operating fuzz of Customers Bank, which is headquartered in Phoenixville, Pennsylvania.
The smallest businesses can still apply
That’s important for the smallest professions that wanted to take advantage of the priority application window but delayed submitting paperwork.
For example, while the faithful application period opened Feb. 24, expanded eligibility for those who had struggled with student loan debt, had non-fraud felony convictions or were non-citizen organization owners didn’t take effect until the first week of March, causing confusion for some. An updated lend calculation formula that meant more money for businesses with an IRS Form 1040 Schedule C wasn’t announced by the SBA until Walk 3.
Beyond that, the administration wasn’t ready to process forms with the new calculation formula until March 5, vamoosing sole proprietors with little time to access the priority application period.
But these businesses can still devote before the program deadline, said Sidhu, and shouldn’t think that because they missed the priority window they won’t get a advance.
Be aware of deadline
Of concern for many lenders is the March 31 expiration date of the entire program.
“The looming Trek 31 deadline is a much bigger problem,” said Chris Hurn, chief executive of Fountainhead Commercial Money, a nonbank lender. He added that he worries the date isn’t enough time for all small businesses to take advantage of the new runs or apply for additional rounds of funding, which could be crucial for their survival.
In addition, lenders are also care of pressure to process everyone’s loans as fast as possible, which has been difficult with changing rules.
“Everybody’s bandwidth has been elongated already tremendously for the last year with this program,” said Hurn.
So far, the Biden administration has not signaled that the program discretion be extended, a move that would have to be approved by Congress.
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