New PPP loans on the way with recent COVID-19 relief bill
BIRMINGHAM, Ala. (WBRC) - We’re On Your Side covering details of the $2 billion COVID-19 stimulus package and what it means for you. What can small businesses expect out of this new deal?
The new COVID-19 relief bill is adding an additional $285 billion to the Paycheck Protection Program. One of the businesses hoping to get one of those loans is Global Team Staffing. They provide workers for the food business at hotels and universities.
CEO Greg Minard says his company has lost about 45% of its business this year due to the pandemic. Earlier in the year, Global Team Staffing had to lay off a lot of employees. It was able to bring about a third of them back, but Minard says business is day to day lately, finding creative ways to tighten its financial belt. He’s hopeful for the next round of PPP loans.
“Try to get any business that we can to come along and work with us. The biggest thing is being thrifty and trying to stretch a dollar and stay alive,” Minard said.
Businesses that got an initial PPP loan can qualify for a second one through the “second draw” option up to $2 million.
Also, the government is making it easier to forgive those loans. But, stricter eligibility rules are in place to qualify for this one. The rules say your business must employ less than 300 people and be able to demonstrate a drop in sales of at least 25% during at least one quarter of 2020 compared to 2019.
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