Relief for small businesses with PPP loan

COLORADO SPRINGS, Colo. (KRDO) -- Financial relief is on the way for thousands of small businesses in southern Colorado. The Payment Protection Program (PPP) is now accepting applications.

"In the last round under one and two allocations there were a little under 109,000 different businesses and entities that were eligible and it was about $10.4 billion, so our expectation is a good vast majority could apply for a second round PPP loan," said Frances Padilla, the District Director of the Small Business Administration in Colorado.

During the first round of PPP loans, a total of 7.5% were given to Colorado Springs businesses and entities. The new funding is available to both first-time applicants and returning applicants.

A bigger pool for applicants is available as well as new entities that have been added for those businesses looking to get extra help.

Some of those businesses include non-political marketing organizations and some news organizations that fall under affiliation standards.

The first draw requires a company or non-profit to have 500 or fewer employees, while the second requires 300 or less. However, as long as recipients of the loan follow forgiveness terms, this loan can basically become a grant.

"We've also expanded some of the eligibility so that we can make sure that people can maximize that 100 percent forgiveness…I think from my perspective it is disheartening that we have to do this, because no matter what kind of relief you put out there it does not make up for the actual revenues," shared Padilla.

Another requirement is employee and compensation levels must be maintained. The loan proceeds must be spent on payroll costs and other eligible expenses. That means 60% of the proceeds need to go towards payroll costs.

The Second Draw PPP Loans will be given to eligible borrowers who qualify for full loan forgiveness if, during those 8 to 24 weeks covered period following the loan disbursement, the employee and compensation levels remain in the same form required for the First Draw PPP loan.

For more information on how to apply go to this website.