Small businesses given a second chance to apply for PPP loan

The U.S. Small Business Administration has approved 38,984 economic injury disaster loans totaling over $7 billion. Of this, one is from the CNMI, and the amount, $63,500.

Also, under SBA’s Paycheck Protection Program, 1.66 million loans have been approved, amounting to $342 billion. A total of 56 of these loans are from the CNMI, which totaled $12,619,835. These are approvals through April 16.

In a joint statement, U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administrator Jovita Carranza said the Paycheck Protection Program is providing critical support to millions of small businesses and tens of millions of Americans.

“We have noted the large number of companies that have appropriately reevaluated their need for PPP loans and promptly repaid loan funds in response to SBA guidance reminding all borrowers of an important certification required to obtain a PPP loan,” they said.

To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million.

This is in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Regulatory guidance implementing this procedure will be forthcoming.

“We remain fully committed to ensuring that America’s workers and small businesses get the resources they need to get through this challenging time,” they added.

$310 billion second appropriation for PPP

According to Delegate Gregorio Kilili C. Sablan’s (Ind-MP) e-newsletter, a second appropriation of $310 billion is now available for the PPP, with a $6-billion set-aside for smaller lenders serving communities like the CNMI.

The money, according to Sablan, is part of the Paycheck Protection Program and Health Care Enhancement Act, H.R. 266, which the House passed Thursday and the President signed on April 24.

“In the first round of PPP funding 56 Marianas businesses received $12.6 million in loans to pay staff and meet other operating expenses during the coronavirus crisis,” he said.

The initial billion-dollar appropriation has ran out, and this new wave of funding provides a second chance for businesses who did not make the cut.

“They now have a second chance, if they act quickly. Three lenders in the Marianas are participating in the program—Bank of Hawaii, Bank of Guam, and First Hawaiian Bank—according to the U.S. Small Business Administration,” Sablan added. “The PPP loans are for two years at 1% interest. The loans will be completely forgiven, however, if an employer uses at least 75% of the money to retain employees.”

Applications are being accepted since April 27. Application forms are available for download at https://sablan.house.gov/sites/sablan.house.gov/files/documents/PPP-Borrower-Application-Form-Fillable.pdf.