The new round of PPP lending has not yet started

The Federal Small Business Administration (SBA) is in the process of updating the guidelines that will govern the new round of the Payroll Protection Program (PPP), so that loan applications are not yet received.

This new round, for which $ 324 billion was allocated to all U.S. states and territories, was approved in late December as part of the new economic stimulus package to address the COVID-19 pandemic.

“Currently, the SBA, in consultation with the Treasury Department, is working expeditiously to identify changes in the forms and processes of the program rules, as set out in the legislative text, and to update properly guide and systems for PPP lenders and borrowers, ”the SBA said in written statements yesterday.

“The SBA and Treasury are committed to ensuring that the next round of PPPs is launched as soon as possible to provide critical economic relief to small U.S. businesses,” the entity added.

For its part, Banco Popular, through its communications officer Juan Cintrón, has reported that the institution has not yet accepted PPP loan applications under this new round., As it is waiting for the SBA to issue new guidelines and instructions on how to work with the program.

Oriental Bank also reported, in written statements, that “as soon as the SBA announces the requirements to apply for the PPP, we will be including them in the online application to start receiving them.”

The PPP grants loans designed to provide a direct incentive for small businesses to keep their workers on the payroll. Loans are requested from private financial institutions listed as program participants. The SBA forgives loans if all employee retention criteria are met and the funds are used for eligible expenses.

Last year there were two rounds of the PPP. Under this program, Popular obtained approval for more than 29,000 small and medium-sized business loans totaling more than $ 1.4 billion. These include $ 240 million for customers in the continental United States, $ 27 million for customers in the US Virgin Islands, and $ 1.2 billion that was disbursed in Puerto Rico. Popular originated 63% of PPP loans in Puerto Rico.

Oriental indicated that it completed 4,042 PPP loan applications, for a total of $ 164 million. “We were the first to run the process digitally, without the need for our customers to visit our offices,” said Carlos Comas, vice president and director of Oriental Business Banking. “We are equally prepared in this round to provide you with the service that customers need.”

More than 4.9 million PPP loans were granted in 2020 to businesses and nonprofits across the United States as a palliative to the economic impact of coronavirus.

Extension to the EIDL

On the other hand, the SBA recently announced that the deadline to apply for the Economic Damage Disaster Loan (EIDL) program for the declaration of disaster for the COVID-19 pandemic extends December 31, 2021.

To date, the SBA has approved $ 197 billion in low-interest loans that provide working capital funds to small businesses, nonprofits and agricultural businesses.

Loans are offered on very affordable terms, with an interest rate of 3.75% for small businesses and an interest rate of 2.75% for non-profit organizations, with a maturity at 30 years and an automatic deferral of one year before monthly payments begin, the SBA reported.