The Small Business Administration will begin accepting Paycheck Protection Program loans next week after President Donald Trump signed a $480 billion relief package into law on Friday, according to a joint statement released by the SBA and the U.S. Department of the Treasury.
“The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower," according to the statement. "This will ensure that SBA has properly coded the system to account for changes made by the legislation."
The SBA recently set new guidelines to help ensure small businesses will receive this round of funding, and not publically traded companies. Under the new guidelines, companies will have to certify that they do not have other sources of funding (like the ability to sell company stock) and are unable to secure a loan from a financial institution to be eligible.
In addition, the SBA is also urging large corporations to give back the money received during the last of $350 billion disbursements of PPP loans - which ran dry in two weeks - or face scrutiny over whether they made the required certification in good faith. Corporations with other means of securing funding and accepted a PPP loan will have until May 7, 2020, to repay their loan in full without further SBA investigation.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously. All eligible borrowers who need these funds should work with an approved lender to apply," according to the statement. "Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan."
For more information on the Paycheck Protection Program, click here.