Delaware is getting its share of loans from the Small Business Administration’s Paycheck Protection Program during its second round.
More than 5,600 applications totaling for nearly $400 million were approved in the latest round of funding as of May 1st. That puts 45th among states which SBA Delaware District Director John Fleming said is in line with the state’s population.
SBA Delaware District John Fleming said that puts Delaware 45th among states. He believes things are going more smoothly in this round because applicants have a better understanding of the process.
“The process and the rules are rolling out, almost changing daily,” Fleming said. “There are clarifications that come out. Sometimes in the beginning, folks were reluctant to apply because they didn’t know all the rules.”
Fleming adds over $100 billion in funding is still available as of Tuesday and he encourages more Delaware businesses to apply before the program ends June 30th.
“If we don’t use this money, it goes to other states. It’s not like it’s set aside for Delaware. The money will be used by other states,” Fleming said. “So, we want to make sure that everyone gets their applications in to benefit the small business community right here in Delaware.”
Fleming advises applicants to seek another lender if they haven’t gotten a decision from their bank yet.
PPP loans convert into grants after eight-weeks if all employees are kept on the payroll and the money is used for rent or utilities. Recipients should start preparing documentation needed to forgive the loan when the program ends June 30th.
The SBA approved 4.2 million applications for more than $531 billion since the program began in March. More than 2.5 million applications for nearly $189 billion nationwide since Round 2 funding was released two weeks ago. The average loan size fell to $73,000 dollars.
Small businesses are also encouraged to seek funding through other SBA programs like the Economic Injury Disaster Loan program. The program was recently extended to agricultural businesses.