First State businesses can start tapping into new PPP loans
A second round of PPP loans become widely available to Delaware businesses this week.
The first round of PPP loans ended in August. More than 13,000 loans totaling more than $1.5 billion were given out to First State businesses.
Congress approved another $35 billion at the end of last year for a second round of the national program geared at helping businesses affected by the pandemic.
U.S. Small Business Administration Delaware District Director John Fleming says this round has extra benefits for businesses that had to invest in coronavirus protections.
“One of the changes was they allowed for some of the use of proceeds to be used for improvements and changes that were made to protect from coronavirus," said Fleming. "So if a restaurant made changes for out side seating, that kind of thing, that is now eligible to be used.” =
The next round also reduces the number of allowable employees for a company to be eligible from 500 to 300. The amount allowable for hospitality businesses is increased from 2.5 times to 3.5 times the monthly payroll. And more nonprofits are eligible this round.
Fleming adds some smaller community lenders in Delaware got an advanced notice they are eligible to send in applications on behalf of the businesses they lend to.
The program opens to all lenders Tuesday.
Fleming warns businesses applying to be aware of potential fraud attempts.
“There’s a lot of people that are hearing from outside third parties that they can get you more money, or they can do this and that for you," said Fleming. "Make sure you are responding to reputable people. Make sure you are responding to emails that have dot-gov.”
The SBA will be indefinitely holding twice a week Zoom conferences for businesses that have questions.