The Paycheck Protection Program is aimed at helping small businesses keep their employees on payroll throughout the COVID-19 pandemic with forgivable loans.
The first round of PPP loans went quickly, and the next is expected to go even quicker.
Recently, Congress secured nearly $350 billion in a rescue package for small businesses across the country to keep their employees on payroll for 8-10 weeks.
And that money went out quickly.
“We’re hearing a lot of reports that we’re expecting some additional funding. Our lenders are continuing to process through and fund the loans that were approved the first round and they’re also getting ready for another wave,” said Brent Donnelly, Deputy District Director for the Montana Small Business Association office.
So if you missed the first round of funding, it’s time to call up your banker and establish a good working relationship.
“Relationships, relationships relationships,” said Donnelly.
“Get with your bank. All the funds of this flow through the banks, through the PPP program. That’s how it went the first round. I would expect that, at least, I don't have any reason not to expect anything different for the second round,” he continued.
Community banks are echoing the same information as the Small Business Association and have some tips to be prepared once Congress passes another relief package.
“In the meantime, make sure you have a copy of your current tax return, you’re communicating with your community banker, and you have a pretty good eyeball and grasp of your average monthly payroll costs,” said Sam Gilmer with Madison Valley Bank.
Finally, the Small Business Administration and community banks say keep your eye on the news to see when Congress passes another relief package.
On Tuesday, the U.S. Senate passed a relief bill totaling approximately $480 billion. The bill now goes to the House of Representatives, where a vote is expected Thursday.