The federal government has passed The CARES Act to provide relief funds of $350 billion via Paycheck Protection Program loans to small businesses that were impacted by the coronavirus pandemic. Less than two weeks, the allocated funds for the program depleted, as lenders submitted more than 1 million PPP loan applications to the Small Business Administration (SBA). On April 15, the SBA has issued a statement that they’re not accepting new PPP applications until more funding is appropriated.
The PPP rollout was spoiled because there were uncertain instructions from the federal government, lenders focusing on their existing clients, and a stream of loan applications by the small businesses for concern that the funding money would run out. On average, the loans were offered to 1.6 million businesses – which is approximately 5% of the 30.2 million American small businesses, causing some of the hardest-hit businesses to left stumble.
The discussions on the allocation of more funds for the coronavirus stimulus package are ongoing, but nothing officially decided or rolled out in terms of a bill or plan as of yet. If you’re among the left-out businesses in need of financial assistance, here is what you should do now.
Contact Your Senator and Representatives
Members of Congress are at a standstill concerning how and when to supply funding for the PPP. The first step you can do is to make your voice heard by calling and emailing your Senator and Congress representatives and inform them how crucial the SBA funding is for your business especially at this challenging time.
You can find your U.S. Senators here. If you don’t know about your congressional district or the Congress representative. Use this service to find your Congress representatives with links to their website and contact page.
While contacting the representatives, provide your complete details including your name, city, and zip code for the representative to verify you are a constituent and explain you’re calling because you need funding for the SBA’s Paycheck Protection Program and that you request your representative to sanction funding immediately. You should also explain why you need this urgent funding and how it can support your small business.
Use every possible channel including social media platforms like Twitter to share your views and let them know how crucial it is that PPP funding is replenished immediately.
Connect With Your Lender
Your loan application might be in the SBA’s approval queue if you’ve already applied for a PPP loan through a lender. The next step is to connect with your lender with whom you have submitted your loan application and ask them to update you on the status of your loan application. Be patient and don’t get depressed while you wait to hear back from your lender.
Look for Lenders That Are Still Accepting PPP Loan Applications
Most lenders that were accepting PPP loan applications have closed their portal for new applicants because of massive demand. However, many others will continue to accept new applications because it’s expected that the federal government will authorize additional funding to the program eventually. Prepare your documentation and look for lenders that are still accepting new applications for the PPP loan when more funding will be authorized if you haven’t applied already.
Look Into Other Small Business Relief Resources
The Paycheck Protection Program is the major financial aid by the federal government for small businesses, but it’s not the only option. You can tap into many other small business relief resources such as grants and relief funds from private and nonprofit organizations or state or local government financial support for small businesses.