Struggling small businesses are about to get another shot at a lifeline as the second round of federal payroll funds became available Monday morning.
$310 billion is available in the second round of funding for the Paycheck Protection Program, although that amount is expected to run out quickly. The application window opened at 7:30 a.m.
Yanni Placourakis runs the 1400 Bar and Grill in Alameda, and told KCBS Radio previously that he was still waiting for a response on his application when the first round of funding ran out. “I read all of the qualifications you need to get that loan: small business, less than so many employees, I fit every single bit of that to the tee. It’s just kinda scary. It’s scary but I’m hoping for the best.”
Placourakis has had to lay of 28 of his 30 employees as he shifted to dinner takeout only.
A few miles away at the USS Hornet Museum, executive director Mike McCarron is encouraged by a small business loan he just received to keep the museum afloat for summer.
“It allowed me to exhale for a little bit and say okay, we’re going to make it at least this summer,” says McCarron. “We’re going to figure out what we can do, we’re going to reprioritize some options here. But we have the option of doing that and that’s what’s great about it.”
McCarron is still hoping for a PPP loan because that one is forgivable, and the additional funding would allow him to rehire staff and plan for a possible reopening later this summer.
A large portion of funding will be directed through smaller lenders, minority-owned banks and credit unions in the second wave. $60 billion of the $310 billion total has been earmarked for these organizations.
Federal officials are expecting a tidal wave of applications today, in addition to many applications still outstanding from the first round of loans, but experts say it does not hurt to apply.