After months of back and forth, Congressional negotiators have finally agreed to a new stimulus package that would—among other things—appropriate $300B to the SBA to reopen the Paycheck Protection Program.
The Emergency Coronavirus Relief Act of 2020, which came together over the course of the last month, would allow some small businesses who have already taken out a PPP loan to take out a second. In all cases, PPP borrowers in this next round will take part in a “simplified” Forgiveness process, as mandated by the new legislation.
All-in-all, the announcement of the bill is welcome news to small business owners who have struggled during the course of this pandemic, while navigating changing rules and restrictions around public health.
According to a recent Wall Street Journal survey of more than 8,000 small business owners, nearly 60 percent of respondents told the Journal they’d need an infusion of capital within the next six months if they were to survive. This survey response underscores a coming rush in demand that many will be familiar with from the first two rounds of PPP.
During the first round, more than $300B in PPP funds were depleted in a matter of two weeks; a feat the head of the SBA described as doing 14 years worth of loans in 14 days.
With the expected passage of this stimulus bill, the SBA will soon reopen PPP to struggling businesses. And as always, Numerated is here to help through our platform and through industry-leading support.
Having reviewed a draft of the legislation, our insights team will be holding a special session this Friday, Dec. 18, to help banks and credit unions prepare for the next round of PPP funding. Attendees will get:
- A breakdown of the new legislation
- A look at how Numerated will help support our community of over 100 banks and credit unions during the next round of PPP
- A review of what actions banks and credit unions need to work with Numerated for PPP lending
Editor’s Note: The Dec. 18, 2020 webinar on PPP legislation is no longer available on demand. Get the latest insights from Numerated, here.