Some of the nation’s small businesses, including child care programs, are being prioritized under the updated Paycheck Protection Program announced Monday by the Biden Administration.
Under the latest iteration of the program, businesses with fewer than 20 employees have exclusive access to the application for financial aid for 14 days: Feb. 24 to March 10. During this time, only the smallest of businesses will be offered loans by the Small Business Administration (SBA).
“Small businesses are the engines of our economic progress,” President Joe Biden said. “They’re the glue, and the heart and soul of our communities. But they’re getting crushed.”
A majority of child care programs in Los Angeles and San Bernardino Counties employ fewer than 20 people, meaning these facilities would receive priority for this new round of PPP loans.
Applications for the Paycheck Protection Program for all businesses are due no later than March 31, 2021 but program funding could run out before then.
The maximum loan amount you can claim is $2 million. For the loan to be forgiven, employee and compensation levels must be maintained, the loan proceeds must be spent on payroll costs and other eligible expenses, and at least 60 percent of the proceeds must be spent on payroll costs.
The SBA also clarified that business owners who are not U.S. citizens but who are lawful residents are eligible for loans.
To apply for a loan, you first have to find a lender, which can be done through a portal on the SBA website using the Lender Match tool or the Search for Lenders option.
Once you’ve found a lender, you can apply for the appropriate-sized loan. If you have not received a PPP loan before you can apply for First Draw PPP Loans. Business owners who have received one in the past but need further support must apply for Second Draw PPP Loan.
For more information about PPP and other financial business supports, please visit the Office of Child Care’s (OCC) webpage: Early Care and Education Providers: Taking Advantage of the New Small Business Administration Loan and Grant Programs, which includes the following information:
• Two national webinar videos to help you understand and access PPP—one video for FCC educators and one video for ECE programs
• Several resources for small businesses to help FCC educators and ECE programs learn more about PPP and navigate the challenges created by the pandemic.