Early SOEs Can Start Using New PPP Loans

A second round of PPP loans becomes widely available to Delaware businesses this week.

The first round of PPP loans ended in August. More than 13,000 loans totaling over $ 1.5 billion have been made to First State businesses.

Congress approved an additional $ 35 billion late last year for a second round of the national program to help businesses affected by the pandemic.

US Small Business Administration Delaware District Director John Fleming said this cycle has additional benefits for companies that have had to invest in coronavirus protections.

“One of the changes was that they allowed some of the use of the products to be used for improvements and changes that were made to protect against the coronavirus,” Fleming said. “So if a restaurant made changes to the outside seating, that sort of thing, that can now be used. =

The next round also reduces the number of eligible employees for a business to be eligible from 500 to 300. The eligible amount for hospitality businesses is increased from 2.5 times to 3.5 times the monthly payroll. And more nonprofits are eligible for this round.

Fleming adds that some smaller Delaware community lenders have been given notice that they are allowed to send requests on behalf of the businesses they lend to.

The program opens to all lenders on Tuesday.

Fleming cautions companies asking to be notified of potential fraud attempts.

“A lot of people hear from outside third parties that they can make you more money or that they can do this and that for you,” Fleming said. “Make sure you respond to people you trust. Be sure to reply to emails containing dot-gov.

The SBA will be running Zoom Conferences twice a week indefinitely for businesses with questions.

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Johnnie Hill

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