The Federal Government has announced that financial institutions with less than $1 billion in assets will get exclusive access to the Paycheck Protection Program (PPP) portal at least two days earlier than other lenders during the program's second round, which is expected to open this week. Bank of Idaho meets the early-participation criteria.
"The extra time will definitely be an advantage for the small businesses we're working with," said Bank of Idaho President and CEO Jeff Newgard. "As a matter of fact, we rolled out a waitlist, where hundreds have already signed up to hold their place in line."
Newgard said that even people who used other lenders for the first round of PPP assistance may want to consider using Bank of Idaho for the upcoming iteration because of its impressive track record. During round one of the PPP initiative, with its staff working remotely and in many cases round-the-clock, the bank secured more than 1,000 loans for Idaho business owners under deadline pressure.
"While other lenders focused on big-ticket loans, we saw that there was a critical need for smaller amounts, so we've got plenty of PPP loans on the books for less than $20,000," Newgard said. "Navigating the process takes care and attention, and that's where we excel."
Businesses affected by the Coronavirus pandemic could be eligible to receive a low-interest-rate loans under this program and can learn more details at https://www.bankofidaho.com/cares. PPP loans may be eligible for full or partial forgiveness if the money is used for qualifying costs and depending on the specific rules of the program.
The SBA also added optional demographic reporting section to its round two application in the hopes that lenders will encourage borrowers to fill it out and bolster, "efforts to reach underserved, minority-owned, veteran-owned and women-owned businesses."
According to the U.S. Dept. of Treasury, key updates for round two funding include:
• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.