Small businesses get a second chance at federal loans
The Paycheque Protection Program, according to lenders, allows small businesses to claim up to twice the amount of their monthly payroll.
The Small Business Administration says that if the business uses at least 75% of the loan for payroll, keeps all of its current employees, and uses the rest for rent, utilities, or mortgage interest, the entire loan can be canceled.
“If we don’t have to pay it back, I will definitely thank the United States government for sure,” said Victor Lopez, owner of El Pollo Grill.
“Every day you wake up and tell yourself it’s a dream, it’s really crazy,” Lopes said of the pandemic, thinking about it.
He applied for the first round of loans and got $ 10,000 for each of his three locations. He hopes to earn more money with the second round so he can continue serving the community.
“It’s really important that they try to apply now because the last time the funds ran out and people didn’t get the loan,” said Paul Kendall, chairman of Trust Capital.
Kendall said the company has changed course from helping customers finance equipment to helping small businesses get the money they need during the pandemic.
Kendall said the biggest mistake he sees on this app is asking for more than the SBA limit.
He advised small businesses to apply from as many lenders as he can find, to have a better chance of obtaining the coveted PPP loan.
If the company spends the money outside of SBA parameters, it has six months of deferred payment and a 1% interest rate.
“My employees are number one, so they get paid first no matter what, they get paid before me,” said Lopez, as the money will go to his employees, food for the restaurant and rent. “It will help, if it takes a year it will definitely help.”