LAKE CHARLES, La. (KPLC) - The U.S. Small Business Administration announced that the Paycheck Protection Program will once again reopen to give billions to small business hurt by the pandemic.
The new round of PPP loans will give $284 billion toward job retention and other small business expenses.
Susan Thibodeaux with the Small Business Development Center at McNeese says this new round of money can greatly help those struggling businesses.
“A lot of them still aren’t making enough money to pay all their bills and their employees,” Thibodeaux said. “If you can’t pay your employees, they’re not going to stick around. This is what this money is for. We all need money to pay our bills. This is helping small businesses to pay their bills, and it’s also helping their employees to pay their bills.”
Initially only small businesses applying at community financial institutions will qualify, but the SBA has said it will be open to all small businesses soon.
“SBA is initially only opening it up and letting community financial institutions take the applications because the applications will go directly to these banks or financial intuitions.”
This loan is potentially forgivable if businesses use at least 60 percent for payroll expenses.
“If they want this loan to be forgiven, then they have to only use if for what it was meant to because if they use it for other reasons, then it wouldn’t be forgiven.”
Owner of Southern Blend in Moss Bluff David Armstrong says this federal assistance would be very helpful to the coffee shop.
“First five months of being open, I mean, you get hit with two hurricanes, let alone all these mandates with COVID,” Armstrong said. “With business being up and down, with COVID restrictions and the hurricane, what comes in genuinely is what comes into my family. It would definitely help out a lot to be reassured knowing that we do have that money in there for payroll.”
The application deadline is March 31. When businesses do receive the loan money, Thibodeaux recommends putting the payment in its own separate checking account.