New Paycheck Protection Program Loans Coming To Alaskan Businesses Soon
Alaska businesses will soon be able to apply for a second round of Paycheck Protection Program loans. The second COVID-19 relief and spending package passed by Congress in December includes an additional $ 284 billion for businesses affected by the pandemic.
The basic idea remains the same: to transfer money to companies so that they can continue to pay workers. But the bill expanded loan eligibility to include nonprofits, concert halls and cultural institutions that have struggled due to closures forced by the pandemic.
“I am happy that the second draw is coming because we still need it,” said Clark Bihag, senior regional director of the Small Business Administration, who is working on setting up the program.
He said the SBA was more methodical with the opening of this round of the Paycheque Protection Program.
“Companies will soon have the option of getting a second draw on their PPP, but we are still waiting for the SBA and Treasury to open the application process,” he said.
Money arriving in Alaska will soon be paid through some local banks. These include First Bank, FNBA, Northrim, Mt. McKinley, Wells Fargo, Alaska USA, and Denali State Bank, according to the SBA.
But for now, the Small Business Administration wants employers to prepare.
Coverage of new loans has widened, according to Bihag.
“Labor costs, mortgage interest and obligations, rent obligations and utility payments were the originally compensable expenses,” Bihag said. “They added operating expenses, property damage costs, supplier costs and worker protection expenses to the list of reimbursable expenses.”
Bihag said he wanted people to understand and benefit from the program.
“[I get] satisfaction from talking to the small businesses that I helped in the first draw, and they come back and say “oh yeah, we got our P3 loan approved!” ” did he declare. “So despite all the stress, the program worked and people were able to keep their employees on the payroll. “
PPP applications will be open until March 31, and EIDL loans will be open until December 31 or until funds run out. Funds are on a first come, first served basis.
Correction: A previous version of this story misstated the closing date of the EIDL loan period.