With the latest stimulus bill, businesses will see another round of Paycheck Protection Program (PPP) payments available to them. $284.45 billion have been allotted to this round of PPP. Whether Black businesses will get more access to the PPP this time around has yet to be seen as with the last round only 2% of Black-owned businesses received loans as part of the CARES Act. Most banks only even considered applications for their existing customer base. On top of that Black business owners are denied loans at twice the rate of white business owners.
Though there, as of yet, has been no mention of how any tweaks to this second round will make sure that the PPP reaches more businesses who are actually in need of it, there is mention of an expansion in what expenses can be covered with the PPP. 60% of the funds borrowed would still need to cover payroll, but the other 40% can now be spent on equipment to help make your business safe during the pandemic. It also can be used on any expenses incurred by vandalism.
The PPP will still go through the SBA. At the moment, the details have not been released, but posting soon on how you can apply.
Original Article: Forbes