AMARILLO, Texas (KFDA) - The U.S Small Business Administration (SBA), announced last Friday that the Paycheck Protection Program (PPP) will be re-opening this week for new borrowers and certain existing PPP borrowers.
A moment many local businesses have been eagerly awaiting.
“This time around we’re seeing a lot of the smaller businesses in town asking questions about it,” said Gina Woodward, director of Amarillo’s Small Business Development Center (SBDC). “The first round, it was released quickly and it was intimidating, there seem to be this perception that only our larger businesses qualify, absolutely not the case.”
This time around, the reopening has been staggered. Meaning, only community development banks and credit unions will be able to initiate applications today.
However, those type of institutions locally have not started applications.
“We have a CDC and a CDFI to my knowledge neither of those are processing PPP applications so later this week it will open to lenders nationwide,” said Woodward.
As a reminder, this round of loans is available for businesses with no more than 300 employees and experiencing at least 25 percent drop in revenue in a quarter between 2019 and 2020.
Aside from qualifications, another difference this time around is the expansion for eligible expenses.
“Now it covers a lot of regular operating expenses and some expansion for covid,” said Woodward. “So, if a business is using QuickBooks or if they’re using Shopify, and a lot of businesses have expanded and they’re using Shopify, those are now fully forgivable expenses.”
Local bigger lenders like Amarillo National Bank and Happy State Bank should be starting taking applications later this week.
Amarillo National Bank says either Tuesday or Wednesday, while Happy State Bank is looking at late this week or early this week.
“We’re talking to customers and non-customers on a regular basis,” said Mikel Williamson, president of Happy State Bank. “We have stayed in touch with our existing customers through all the round of PPP so there’s been a lot of conversation back and forth on what customers are interested and which are not and as soon as we can start the application process, we will.”
Experts recommend to start getting your finances in place and the Amarillo Small Business Development Center has consultants available to answer any questions about PPP.