Southern Nevada businesses will be able to apply for the latest round of the Federal Paycheck Protection Program – a lifeline that has helped businesses and nonprofits keep jobs and weather the COVID-19 pandemic and related blockages – from Wednesday.
“It’s sad that we have to have the second PPP draw in some ways,” Joe Amato, director of the US Small Business Administration’s Nevada district office, said Tuesday at a virtual seminar with the Las Vegas Global Economic Alliance. “But it’s also obviously something that the SBA and the Federal Government have seen as more than a necessary source of funding or stimulus and, without a doubt, something long in coming.”
More than $ 4.1 billion in P3 funds went to Nevada businesses in 2020, according to the Nevada Bankers Association. The program, administered by the SBA and the Treasury Department, allowed community financial institutions and minority deposit-taking institutions to process PPP applications on Monday before opening it up to other lenders.
In December, Congress authorized $ 284 billion to provide repayable PPP loans to small businesses as part of a larger $ 900 billion COVID-19 stimulus bill, which President Donald Trump signed later this month. The “second draw” of the PPP is intended for small businesses that can demonstrate a need.
Last year, SBA administrator Jovita Carranza visited businesses in Las Vegas that have benefited from PPP funds.
“When you talk to entrepreneurs in any state, and here in Nevada is really no different, one thing all small businesses have in common is that the Paycheck Protection Program has served as a lifeline. rescue, bridge, to support their businesses, protect their employees, as well as maintaining the level of wages and benefits ”, Carranza told the Review-Journal last August. “The other consideration they all express is whether we are able to provide another lifeline.”
Amato said companies must provide financial documents as part of their PPP application, typically an income statement, which shows a 25% drop in revenue in any quarter of 2020 compared to the same quarter. from 2019.
Companies looking for the maximum loan amount on PPP is 2.5 times the average monthly salary costs of the borrower. “In a lot of cases you can use what you used to get your first print, you can use the same documentation,” Amato said.
Melissa Liu, of the Asian Chamber of Commerce in Las Vegas, told the Review-Journal on Tuesday that the chamber has contacted its members about the new round of PPP.
“A lot of them applied in the last round, were very happy and it was a big help to them and at the moment it’s always difficult for their company, so they were very happy to know that the second round starts now, ”Liu said, adding that the funds will help reduce stress for business owners. “The money will help them stay open and try to get through this difficult time and it will help them pay the rent and all the necessary expenses.”
Some banking executives across Nevada said last week that they anticipate another wave of PPP applications and that they are well prepared.
“The first wave of PPP loans in 2020 were unprecedented, and we handled the tsunami of demands as best we could,” said Terry Shirey, CEO and Chairman of Nevada State Bank, adding that he “will do all we can to make sure we are even better prepared for this next wave of funding, knowing that so many companies need support to get through this final phase of the pandemic and get back on the road to economic recovery. ”
Nevada State Bank said it processed more than $ 647 million in PPP loans to 5,137 businesses across the state last year. The overwhelming majority of loans have been made to businesses with fewer than 10 employees, with an average loan to clients of around $ 126,000.
Phyllis Gurgevich, president and CEO of the Nevada Bankers Association, said companies “could benefit from collecting the planned documentation and discussing with their banker confirming the bank will participate in the second round.”