PPP Loan Application Deadline Window Extended
By Colin McEvoy on July 6, 2020
The Paycheck Protection Program (PPP), a federal loan program intended to provide a direct incentive for small businesses to keep employees on their payroll during the coronavirus pandemic, has been extended.
The federal government announced this week that the loan application window for PPP has been reopened, and that the new deadline for small businesses to apply for assistance is August 8.
The Lehigh Valley Economic Development Corporation (LVEDC) has been providing regional companies and stakeholders with information about PPP and other financing programs, in part through the organization’s dedicated COVID-19 resources page.
That page, which LVEDC updates frequently as resources available to businesses becomes available, can be found at lehighvalley.org/covid19. Information about emergency financing programs can also be found at lehighvalley.org/financing.
The LVEDC resources page also highlights the Pennsylvania Department of Community and Economic Development’s (DCED) COVID-19 Relief Statewide Small Business Assistance, which provide grants of up to $50,000 to small businesses impacted by the pandemic.
“It is important for Lehigh Valley companies negatively impacted by the pandemic to find working capital to help create a financial bridge until they can fully operate again,” said Jaime Whalen, LVEDC Vice President of Administration and Investor Relations and Chief of Staff. “We’re working diligently to ensure the regional business community is aware of the resources available so they can get the financing they need.”
The DCED grants are being administered by Community Development Financial Institutions, including the Rising Tide Loan Fund in Lehigh Valley.
Among the programs highlighted on the LVEDC pages is the Federal Reserve’s Main Street Program, which is designed to help credit flow to small businesses that were in sound financial condition before the pandemic but now face cash flow interruptions.
The program offers 5-year loans of $250,000 to $3,000,000 with floating rates and principal payments deferred for two years and interest payments deferred for one year. The Federal Reserve Bank of Boston is registering interested lenders through the program portal.
Additionally, the page highlights various resources and programs offered by the U.S. Small Business Administration, including Economic Injury Disaster Loans (EIDL), SBA Express Bridge Loans, and debt relief to small businesses affected by the pandemic with existing SBA loans.
Regarding PPP, a fact sheet is available as well as a document that addresses frequently-asked questions. Loan recipients may request forgiveness if they meet employee retention criteria and funds are used for eligible expenses.
The Loan Forgiveness Application Form is to be submitted to the lender that serviced the loan. The SBA and the U.S. Department of the Treasury have recently released a revised, user-friendly PPP loan forgiveness application, also known as the “EZ Forgiveness Application.”
In addition to keeping Lehigh Valley businesses informed about available resources and financing programs, LVEDC previously submitted 26 loan applications on behalf of Lehigh Valley companies to the Pennsylvania Industrial Development Authority’s COVID-19 Working Capital Access Program. The loan requests totaled $2.3 million in loan financing.
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