HUNTSVILLE, Ala. – Small businesses in the region continue to apply in large numbers for the third round of government guaranteed PPP loans. The Small Business Administration said it received more than 60,000 applications in a week after the program launched on Jan. 11.
“They are really suffering from this pandemic and the economic fallout,” said Hilary Claybourne, director of the Northeast Alabama Small Business Development Center.
For nearly a year, Claybourne has been helping homeowners navigate the world of finance amid the COVID-19 pandemic.
“Lots of things in the weeds that aren’t typical of the day-to-day business of selling clothes or food or anything in their day-to-day operations,” Claybourne said.
To qualify for this round of PPP loans, companies must show a 25% loss in revenue in the quarter following the outbreak of the pandemic. Businesses can now get their loans fully canceled if they are 60% on their payroll.
“He’s targeting some of those little companies that were really left behind in the first round,” Claybourne said.
The priority now is to help minority-owned and veteran-owned businesses, as well as small rural and truly small businesses, to make ends meet. Restaurants and bars are also eligible for slightly larger loans this time around after being caught off guard by the new regulations. Homeowners can use the loans to pay for things like heaters and outdoor tables, allowing many to increase capacity and get closer to breaking even.
the Small Business Development Center has also provided a number of free resources on their website available here.
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