The U.S. Small Business Administration will resume accepting Paycheck Protection Program loan applications starting Monday morning.
SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steve Mnuchin made the announcement Friday after President Trump signed into law the Paycheck Protection Program and Health Care Enhancement Act.
The new law provides another $310 billion for PPP loans, which are designed as a two-month lifeline for small businesses. The loans have a 1% interest rate but will be forgiven if businesses use most of the funds for payroll expenses.
Originally, Congress provided $349 billion for PPP loans in the Coronavirus Aid, Relief, and Economic Security, or CARES, Act. The application period opened April 3. Less than two weeks later the SBA halted the process because the funds ran out.
Some businesses were unable to get their applications in on time. Other applications were stuck in the pipeline when the money dried up.
Businesses apply for the loans through banks and credit unions, and the SBA guarantees the loans.
The application process begins at 8:30 a.m. Monday.
“This will ensure that SBA has properly coded the system to account for changes made by the legislation,” the joint statement said.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously.”
The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for Americans, they said.