Smaller companies can still enroll in the Payment Check Protection Program

Time is running out for smaller companies to access the priority registration period for the Small Business Administration’s Payment Check Protection Program.

But these companies, along with small businesses of all sizes, will still be able to apply for forgivable loans outside the priority window.

The 14-day priority window announced by the Biden-Harris administration last month ends at 5 pm ET today, 9 March. During those two weeks, only companies with fewer than 20 employees could apply for forgivable loans through PPP, a special period designed to help women and minority-owned companies access funds.

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Even after the closing of this window, it will still be possible for these companies to register and receive financing through the program. While lenders may be competing with larger companies for money, they do not expect the program to run out of money before its March 31 due date.

This year, through March 7, the SBA approved more than 2.4 million PPP loans, totaling almost $ 165 billion. This represents about 58% of the $ 284 billion allocated to the program when it was reopened in January.

“We can exceed $ 200 billion, but I think there is probably still $ 50 to $ 75 billion left,” said Sam Sidhu, chief operating officer at Customers Bank, based in Phoenixville, Pennsylvania.

Smaller companies can still sign up

This is important for smaller companies that wanted to take advantage of the priority registration window, but delayed sending paperwork.

For example, while the special enrollment period opened on February 24, increased eligibility for those who struggled with student loan debt, had convictions for non-fraudulent crimes or were owners of non-citizen companies did not take effect until the first week of March causing confusion for some. An updated loan calculation formula that meant more money for companies with an IRS Form 1040 Annex C was not announced by the SBA until March 3.

In addition, management was not prepared to process forms with the new calculation formula until March 5, leaving individual owners with little time to access the priority application period.

But these companies can still apply before the program’s deadline, said Sidhu, and they shouldn’t think that because they lose the priority window, they won’t be able to get a loan.

Be aware of the deadline

A concern for many creditors is the expiration date of the entire program on March 31.

“The March 31 deadline is a much bigger problem,” said Chris Hurn, chief executive of Fountainhead Commercial Capital, a non-banking institution. He added that he fears that the date will not be enough for all small businesses to take advantage of the new rules or request additional rounds of financing, which could be crucial for their survival.

In addition, lenders are also under pressure to process everyone’s loans as quickly as possible, which has been difficult with changing the rules.

“Everyone’s bandwidth has already been tremendously stretched over the past year with this program,” said Hurn.

So far, the Biden government has shown no signs that the program would be extended, a move that would have to be approved by Congress.

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