The Small Business Administration said Tuesday that it is no longer accepting applications for payroll protection programthat offered small businesses affected by coronavirus pandemic… Existing applications will be reviewed by the end of the month.
The program created in last year’s incentive legislation did USD 799.8 billion in loans more than 8.5 million small businesses.
“I’ve heard story after story from small business owners across the country about how PPP funds have helped them keep electricity, pay their employees and give them hope,” said SBA administrator Isabella Casillas Guzmán.
PPP loans were designed to help small businesses pay salaries to their employees, as well as rents, mortgage interest and utilities. Loans had to be forgiven if they went towards wages.
In New Jersey, more 861,000 small businesses, 11th place in the US according to the State Business Activity Center.
State-owned small businesses received 310,666 PPP loans totaling $ 25.8 billion, according to the SBA. Some businesses have received more than one loan.
But the state’s small businesses still need more help, said Eileen Keen, state director of the National Federation of Independent Business, a small business lobby. She called on the state legislature to use some of the federal funds that the state receives less than $ 1.9 trillion.Oronavirus Incentives Act provide grants to small businesses.
There were problems at the beginning of the federal program. Some small business in new jersey initially could not apply for loans because they spent more on rent than the program allowed. These requirements were changed as Congress expanded the program due to its popularity and then allowed businesses to obtain a second PPP loan as the pandemic continued.
Others complained that they couldn’t get loansdespite the fact that they met the requirements.
SBA later turned to small business and smaller lenders. Guzman said 96% of the loans issued this year went to those with fewer than 20 employees.
“Millions of underserved businesses, especially our smallest businesses and businesses owned by women and people of color, did not participate in the first rounds of aid,” she said. “I am proud of the work we have done to start correcting this inequality.”
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