The next batch of Payroll Protection Program applications is slated to move through the pipeline today.
A total of $360 billion has been allocated for this phase, which comes with restrictions that (may) keep big companies that used perfectly legal loopholes. Such things emerge in hastily enacted legislation subject to special interest pressures.
The PPP is a loan that can turn into a grant if the employer keeps staff on the payroll and save businesses.
At the same time, the speedy nature of the program makes fraud on a massive scale inevitable.
We should know in short order if the amount set aside is close to being sufficient.
The Delaware Division of Small Business is pointing out that one provision of the latest round of PPP loans allocated money to community banks.
The division cites Laura Bilazarian, a venture capitalist and company founder who says the smaller banks could be a nice option for some businesspeople. Click here to read the piece.
One tip for any applicant, ask if you can submit your banker if PPP loan application electronically through SBA’s E-Tran platform. (According to SBA, the form reduces processing time.)
If not, consider contacting a community bank, since $60 billion in loan capacity is set aside for banks with under $10 billion in assets in the second round of PPP funding.
The ranks of community banks in Delaware have dwindled over the years, but institutions operate in all three counties.
Here’s a list of Delaware banks. While credit card and special-purpose banks dominate the roster, it is fairly easy to spot the community institutions.
My apologies for the varied times that have come in sending out this newsletter and breaking news updates. The news flow remains heavy and there was a need to push stories out earlier.
Here’s to staying safe and reopening Delaware the right way. – Doug Rainey, chief content officer.