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Small businesses could get help as Paycheck Protection Program opens back up

Business owners should contact banks to make sure their application is valid
Posted at 10:20 PM, Apr 26, 2020
and last updated 2020-04-26 23:10:08-04

WXMI — Small business owners across the country will once again have the chance to apply for the federal Paycheck Protection Program.

An additional $310 billion was put into the program after passing congress last week.

“The paycheck protection program has been a lifeline for so many small businesses the problem was that it ran out so quickly before,” Small Business Association of Michigan President Brian Calley said.

The PPP’s original funding was given out in less than two weeks.

Some larger companies, like Shake Shack and Ruth’s Chris were the target of criticism for being beneficiaries of the program, many of them returned the money without being asked.

Though Calley anticipates smaller business will benefit this time around.

“We think it's probably likely that a lot of the bigger small businesses got in first. The average loan size is probably going to be smaller on the second round of funding and that means that more truly small businesses will probably get covered at this time,” Calley said.

The former lieutenant governor is urging small business owners around the state to make sure that applications are ready to go when the process opens back up Monday morning.

“Most people that applied before, their application would still be active. We checked with a lot of banks on this. And every one of them said we maintain the applications, we're ready to go as soon as that portal opens up which is 10:30 am Monday,” Calley explained.

“But we've encouraged our members to really push in terms of getting your bank to confirm that not only did they keep the application but have they looked at it and they verified that every t is crossed every I is dotted and it's just ready to go. So they're not stuck you know the portal opens in time to apply, and then they look at and say, oh, you know what actually we needed additional information,” he added.

And as stores across the state remain closed, Calley believes this program is helpful bridge to get through tough economic times.

“This is not going to it's not the answer for the long-term economic health, but it gives small business owners a shot at surviving this downtime surviving in time and they have to be closed, or when activities are severely limited and, in, and restricted,” he said.

This is like a bridge, and for I would say many, if not most small business owners need this bridge for them to even have a shot at making it through and surviving long term,’ he added.

For more information about the PPP, click here.