Deadline nears for small businesses to apply for PPP

Money

PROVIDENCE, R.I. (WPRI) — National data shows there is about $128 billion left to lend to small businesses that have yet to apply for the Paycheck Protection Program (PPP).

The deadline to apply for the program is Saturday.

The loans allow for small businesses to allocate at least 60% towards payroll, while the remaining 40% goes towards other needs like rent or utilities.

“The most important aspect to remember is that if 60% of this loan is used towards payroll then the loan is forgivable, meaning the small business can continue to operate, the employees people can get back to work, and all at no cost to the small business owner,” U.S. Small Business Administration (SBA) District Director Mark Hayward stated.

On July 31, the SBA published the latest PPP statistics for individual states and territories across the United States.

Nationwide, data shows more than 5 million forgivable loans have been approved, and there was still about $128 billion left to lend small businesses.

Data indicates 17,642 PPP loans totaling over $1.8 billion were approved for Rhode Island small businesses as of July 31. Hayward told Eyewitness News he thought the amount was “pretty much in line with what we’ve seen for the number of businesses here in Rhode Island.”

The average PPP loan size for the Ocean State registers in at $106,817 which is slightly larger than the national loan average of $103,000. Hayward says he didn’t find this too be alarming, and the higher loan could be for a number of reasons, including wages or calculations provided to the agency.

The SBA also published national statistics for the top ten industries receiving PPP funding as of July 31.

The top industry to date is healthcare and social assistance, with 522,900 approved loans totaling roughly $67 billion. Loans for healthcare and social assistance accounted for 12.91% of total PPP funding as of July 31.

Hayward noted in Rhode Island, retail, hospitality and restaurants are impacted significantly.

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The program was already extended once in July. A second PPP is under consideration as part of the “HEALS Act” in the Senate.

The SBA says any questions about a current PPP loan or filing for forgiveness should be directed to the SBA R.I. District Office by email at RhodeIsland_DO@sba.gov.

“From a technical standpoint, I know a lot of people are saying, ‘Well, I really borrow with this bank, but they told me they’re not putting anymore PPP loans in,'” Hayward said. “Those are the kind of situations that we want to handle.”

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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