The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act included a $349 billion loan program called the Paycheck Protection Program (PPP). This stimulus program is designed to help small businesses avoid laying off employees over the next few months and help small businesses with other expenses such as rent, mortgage, and utilities. Yet, the rushing of passing the bill means that banks aren’t fully prepared to create stable processes for accepting and funding the upcoming overload of these loan applications.So how can banks prepare for offering SBA PPP Loans?Take note of key dates:
- February 15, 2020 - your business, mortgage, a rental contract, or business loan must have been in effect prior to this date.
- April 3, 2020 - the first date in which small business owners and non-profits can apply for this loan
- April 10, 2020 - the first date in which sole proprietors, independent contractors, and self-employed individuals are eligible to apply for this loan
- June 30, 2020 - the final date to apply for this loan unless funds are exhausted prior to this date.*
- Be sure that small business customers are aware of what documents are needed to apply for this loan.
For example, Zions Bank has a loan application checklist to help its customers obtain a loan through the SBA PPP program. Generally speaking, eligible small businesses must have the following:
- Less than 500 employees and
- Were in operation on February 15, 2020, and
