PPP loans still available for Delaware businesses
Delaware businesses can still sign up for the latest round of Paycheck Protection Program loans.
The PPP program received $284 billion through the stimulus package passed in December — and opened applications earlier this month. Loans are available for new participants, and some that have already received loans.
“I would like to remind people, if you did not get a PPP loan in the first [round], that you can get one now using the first round rules,” said John Fleming, Delaware district director at the U.S. Small Business Administration.
Fleming says anecdotally, his office is seeing fewer applications than the first time around.
As of Jan. 24, 892 PPP loans had been approved in Delaware this year, for a total of $90,024,127, according to a recent SBA report. More than 12,500 loanswere approved in Delaware through June 30 of last year, for a total of close to $1.5 billion.
“This time around, they really did target industries that were affected the most,” Fleming said. “So rather than give money to almost every small business that applied, we have a targeted number. So there’s not as much panic, not as much demand.”
The latest round of loans can be spent on payroll, as well as some operations and property damage costs.
Sen. Chris Coons (D-Delaware) says this year’s iteration of the program was designed with lessons learned from last year.
“It is more targeted, it is more accessible, particularly to smaller and more likely to be minority-owned businesses,” Coons said. “We’ve streamlined the application process.”
PPP loans are forgiven when applicants follow requirements around spending and employment.
“Eighty to ninety percent of the loans that we’ve received applications to be forgiven have been forgiven in full,” Fleming said. “A lot of times when I’m speaking to Delaware small businesses, they’re saying, I don’t want another loan … I’m saying, wait a minute, this is a grant.”
The application period for PPP loans closes March 31.