The second round of the Paycheck Protection Program is underway, and again, it’s a race for small businesses to receive funding. Many small business owners ended the first round with no money and a lot of anger at their banks. The program underwent some tweaks, but many issues remain.
The PPP provides low-interest loans generated by private banks and guaranteed by the Small Business Administration (SBA). The loans are meant to cover costs incurred due to coronavirus shutdowns while keeping employees on the payroll. The loans carry very low interest rates, and the principal is forgiven if the business owner maintains a certain level of staffing and wages. (For more information, see here.)