MORGANTOWN, W.Va. – The latest edition of the Paycheck Protection Program is up
and running.
The program opens first to lending institutions with less
than $1 billion in assets Friday, January 15, then opens to all others on
Tuesday, January 19.
Brian Kassalen manages the PPP Task Force operated
by Arnett Carbis Toothman LLP. Kassalen helps small businesses and non-profits
understand what they qualify for and how to get it under the program. Kassalen
alerts businesses to get the process going with lenders as soon as possible.
“Nobody has a crystal ball at this point, and I read a lot that says
they don’t anticipate running out of money this time, but nobody knows that”
Kassalen said,” They ran out of money the first time pretty quickly.”
Now
the program has extended eligibility to housing cooperatives, destination
marketing organizations, trade associations and will focus on entities that did
not receive money during the first edition back in the spring.
The
district director for the U.S. Small Business Administration in West Virginia,
Karen Friel says the program has also expanded to help cover additional costs.
“They’ve added the business operations expenditures, supplier costs,
property damage costs, worker protection expenditures, adding to the
drive-throughs, ventilation, sneeze guards,” Friel said,” Anything businesses
had to put or was required to stay open.”
To qualify businesses must
have 300 employees or less and be able to document 25 percent or more in losses
between comparable quarters in 2019 and 2020.
According to the Small
Business Administration, there are more than 30 million small businesses in the
country and pre-pandemic they created 64 percent of new jobs. Experts contend
the resurgence of small businesses will drive the economic recovery.
“These are the people that need the money,” Kassalen said,” They need to
start paying people, they need to be able to keep their doors open for as many
months as it takes to get the pandemic behind us.”
This round of the
program includes enhanced benefits for the hard hit restaurant and lodging
industry. Data from the Brookings Institute says by May of 2020 more than 52
percent of businesses in the leisure and hospitality sector were closed
temporarily or releasing large numbers of staff.
“Accommodation and food
service industry, they made it even better,” Friel said,” They are able to
receive three-and-a-half times of monthly payroll costs versus the set
two-and-a-half times for all other businesses.”
Another class of
businesses added to the eligibility list are trade associations of all types.
“A lot of these associations rely on members of the community and
businesses owners to fund dues and programs,” Kassalen said,” Certainly if those
businesses have been impacted these trade associations have felt a reduction in
revenue or have had to lay people off.”
Registration is open for a SBA
Paycheck Protection Program training session on Tuesday, January 19 at noon.