Federal Paycheck Protection Program reopens for loan applicants

Jan. 18—HENDERSON — Small businesses can now get loans to help them pay their employees and cover certain other expenses during the current pandemic.

The Paycheck Protection Program, administered by the U.S. Small Business Administration, is designed to provide loans to small businesses to help them keep operating during the COVID-19 pandemic.

Loans can be used to help fund payroll costs, mortgage interest, rent, utilities, worker protection costs and uninsured property damage costs related to COVID-19.

The SBA re-opened the Paycheck Protection Program loan portal to PPP-eligible lenders with $1 billion or less in assets on Jan. 15. The portal fully opened on Jan. 19 to all participating PPP lenders.

In an announcement to Chamber members, Henderson-Vance Chamber of Commerce President Michele Burgess said small businesses need to be preparing to submit applications.

If “you are interested in applying again or for the first time, now would be a good time to start collecting the necessary financial data needed to submit your application,” she wrote.

Local accountants, banks and other financial institutions are available to provide assistance. “Call them now to ask to be put in their loan application assistance queue,” Burgess said.

They can be located through the Chamber's website at www.hendersonvance.org.

Sheri Jones, director of the Small Business Center at Vance-Granville Community College, said she is just starting to get inquiries about the second round of PPP loans.

She can be contacted at smallbusiness@vgcc.edu for information.

Instructions for applying can be accessed on the U.S. Small Business Administration at SBA.gov,

All PPP applications must go through a bank or other financial institution, Jones said. For that reason, businesses interested in obtaining a PPP loan should contact one of the local firms.

PPP loans have an interest rate of 1%. No collateral or personal guarantees are required and neither the government nor lenders will charge small businesses any fees.

Borrowers may qualify to have the full amount of the loan forgiven if employee and compensation levels are maintained, loan proceeds are spent on payroll costs and other eligible expenses, and at least 60% of the proceeds are spent on payroll costs

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