Tahoe businesses can apply, starting Wednesday, for loans through the Paycheck Protection Program.
In 2020, over 5,900 applications and $583 million were authorized for small businesses through the first round of the PPP, however that program expired in early August and many businesses are still left in need.
In December, more relief was approved for small business owners through the stimulus package allocating $284 billion to PPP loans, PPP 2.0, for small businesses that have been impacted by the pandemic.
A new program is available for both first time and second time PPP recipients through March 31 or until the money is used up.
While there are updated requirements, this is a an opportunity for those who own a small business in the community.
Second time PPP borrowers can receive a “second draw” if the first loan has already been used and the business is continuing to face hardship.
The new PPP is intended to target smaller businesses that might have been hit even harder. The business must have 300 employees or less and can show a year-over-year quarterly loss of revenue of at least 25%.
The loan can cover expenses related to payroll, rent, utilities, healthcare costs and more approved expenses.
Jeremy Gilpin, executive vice president of Greater Commercial Lending, recommends businesses owners act quickly with their lenders to ensure they get approved.
Greater Commercial Lending and Greater Nevada Credit Union are participating in the PPP program for a second round.
In 2020, Greater Commercial Lending approved over 400 loans totaling about $17 million around the Lake Tahoe Basin, with roughly $14 million going to South Lake Tahoe businesses alone.
“South Lake Tahoe used it [the loans] for their intended purposes,” Gilpin said. “There were not many that did not utilize their funds.”
Gilpin said that a majority, about 98-99%, of the business have been granted loan forgiveness as well.
“The need is there and continues to be there,” he said.
Gilpin says that to ensure borrower success, their website has been built and updated with communication in mind, to ensure a smooth application process for borrowers.
Greater Commercial Lending’s online applications open for both first time and second-draw applications open Wednesday, Jan. 13.
They will process PPP loans for all qualified businesses even for those that do not have an existing account or relationship with Greater Commercial Lending.
Gilpin says that acting accurately and swiftly are key at ensuring each small business’s chance at receiving loan approval.
He recommends being prepared with business organization documents, two forms of identification, proof of profit and loss, along with a plan of utilization. He says that GCL in most cases will pull payroll and bank statements from most platforms.
It’s imperative that applications are accurate and void of any errors that could cause applications to be disqualified.
Those who were not approved in the first round, Gilpin said were those who hesitated by waiting for more than two weeks or those with incomplete applications.
The second round of PPP funding will have different requirements than the first, making it crucial for applicants to be prepared with accurate and up-to-date information.
Gilpin says that those who are prepared, have a good chance at receiving the PPP 2.0 loan.
“This is more than a great opportunity, it is the survival of a business,” he said.
Gilpin recommends those in need of a loan to use the literature from their site to be prepared, regardless if they use Greater Commercial Lending as their lender.
“The most important thing is to save businesses and that is what we are in business to do,” he said.
Gilpin said that many can expect to see if they were approved about six or seven days after application is complete.
“Track the progress everyday,” he said.
Find a complete documentation checklist at https://www.gncu.org/Greater-Commercial-Lending/SBA-Paycheck-Protection-Program/.