North Bay Banks Accept Federal Coronavirus Relief Loan Applications For Small Businesses
Start your pencils.
North Bay businesses can once again take advantage of Paycheck Protection Program loans at banks in their area, with the portal fully open for all applications starting Jan. 19, the US Small Business Administration said on Wednesday.
As part of the $ 2.3 trillion federal aid package signed last month that also includes $ 110 billion in tax benefits, the $ 284 billion loan facility represents the second wave of PPP loans available for businesses trying to survive amid the economic upheaval of COVID-19.
Failing the waves of applications, the SBA on Friday opened its loan portal to P3-eligible lenders with $ 1 billion or less in assets for first and second drawdown applications.
As of January 19, the federal program administration has already approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders. The collective amount of loans already stands at $ 5 billion in the first week.
First in line: CDFI
The first group of loans was submitted Monday via “community financial institutions“, according to the SBA. These are defined as community development financial institutions, designed to promote economic vitality in communities in difficulty. CDFIs, which use SBA Form 3507, receive a designation from the federal government that allows small businesses in low-income and minority communities to access capital.
The process runs until March 31.
The exchange bank’s credit manager, Michael Sullivan, said his Santa Rosa bank was ready to accommodate the influx of customers. Similar to the first round of funding process implemented over six months ago, communications and document sharing will be handled electronically.
The bank processed over 1,700 business loans in North Bay in the first round. Over three-quarters of these loans were for less than $ 150,000.
Bank of Marin also said it has processed more than 1,800 in the San Francisco Bay Area.
What is different this time with PPP loans
The main differences this time around include an allowance allowing the business to receive a rebate on the loan and to treat the expense as a write-off – a corporate maneuver that the Internal Revenue Service eliminated in the first wave of loan financing. The IRS called it “double dipping.”
Another change involves 501 (c) (6) organizations requesting loans.
For needs, borrowers with fewer than 300 employees may be eligible for a second PPP financing draw if they meet the criteria for the first.
SBA administrator Jovita Carranza, along with US Treasury Secretary Steve Mnuchin, called the program “an economic lifeline for millions of small businesses.” The intention of the program was to provide financing to companies to keep at least three-quarters of their workforce.
The PPP financing program has provided 5.2 million loans worth $ 525 billion to save 51 million jobs in US businesses, the SBA added.
Susan Wood covers law, cannabis, production, agriculture and transportation as well as banking and finance. For 25 years, Susan worked for various publications, including the North County Times in San Diego County, the Tahoe Daily Tribune, and the Lake Tahoe News. She graduated from Fullerton College. Contact her at 530-545-8662 or [email protected]