BIRMINGHAM, Ala. (WBRC) - Businesses that have struggled during this pandemic are getting another lifeline.
The U.S. Small Business Administration is reopening the Paycheck Protection Program for new and existing borrowers.
The SBA reopened that program Monday, and it will continue through March 31st.
Owner and General Manager of Walco Transport, Derrick Walker, said the first round of The Paycheck Protection Program allowed him to continue operations during these challenging times.
“But most importantly just kind of kept the lights on and keep everything moving because our revenue dipped you know…close to 50% in the first two quarters,” Walker said.
Walco helps other businesses ship products all over the country, especially those that don’t have a shipping arm.
Walker said he employs 18 people and the PPP Loan prevented layoffs and furloughs.
“It was critical for us as a small business to be able to not only keep those guys working, but also make sure that they had money coming in every week to sustain their families as well” Walker explained.
On Monday, the U.S. Small Business Administration, along with the Treasury Department, announced the Paycheck Protection Program will reopen, giving first time and second time borrowers an economic lifeline during the pandemic.
“Obviously we want to…our agency wants to put the money on the street where it will do the most good,” said Director of the Alabama District Office for the SBA, Tom Todt.
“With the small businesses. So, we’ll be working in that effort, and I would encourage people to talk to their lenders, to start getting their information together” Todt said.
There are a few changes to the PPP this time, including borrowers can choose how long they want to be covered up to 24 weeks.
The loans will also cover additional expenses, like property damage costs, supplier costs, and worker protection.
Companies can also apply to have their loans forgiven.