How You Can Still Apply for a Small Business Loan

Businesses struggling to pay their employees can still apply for forgivable loans under the Paycheck Protection Program.

According to data released on the Small Business Administration website, about to $192.5 billion dollars have already been distributed to over 2.68 million businesses from April 27 through May 13 during the second round of the PPP, meaning over $120 billion in funds are still available.

If you are a business that has tried to get funded via PPP and was told there is no more funding available, THAT IS NOT TRUE. As of yesterday there was 100 BILLION DOLLARS LEFT. Go to your bank, go to a local community bank and apply again. The funding is there for qualifying biz https://t.co/jrVe6ExtDB

— Mark Cuban (@mcuban) May 14, 2020

Small businesses still looking to apply for a loan can do so through any existing Small Business Administration lender or "through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating," according to the SBA website. The website also provides of list of lenders participating in the PPP by state as of Tuesday.

Small business owners should consult with their local lenders to see if they are eligible to participate in the PPP program. The application form is available for download so that borrowers can see what will be required of them by the lending institution.

Those who qualify for a loan will have the full amount forgiven if at least 75 percent of the loan amount is used toward payroll for eight weeks – 56 days – and the rest of the amount for interest on mortgages, rent and utilities, according to the Department of the Treasury.

The Paycheck Protection Program received a second round of funding worth $319 billion that it began distributing on April 27. The first round of funding for the program was for $349 billion and was implemented as part of the $2.2 trillion CARES Act, the first congressional coronavirus relief bill that passed on March 27. That funding ran out on April 16, only 13 days after businesses began applying.

The first round of the Paycheck Protection Program saw 1.66 million loans distributed, according to the Small Business Administration report. However, an April 22 survey released by LendingTree, an online lending company, found that out of 60 percent of small businesses who applied for loans through the Paycheck Protection Program from the 1,260 small businesses they surveyed, only 5 percent had actually received loans. Congress had to close loopholes that allowed public companies from getting access to the funds for the second round of funding.

The second round of the Paycheck Protection Program has seen roughly 73 percent of loans given to businesses requesting $50,000 or less, totaling $32 billion spread across 1.8 million small businesses, according to a report released by the Small Business Administration with data through May 8. Only about 1,500 businesses in the report have asked for loan amounts over $5 million.

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US President Donald Trump (L) and US Secretary of the Treasury Steve Mnuchin, listen to Senior Advisor to the President Ivanka Trump as she speaks in the East Room of the White House in Washington, DC, on April 28, 2020. - Trump spoke about supporting small businesses during the coronavirus pandemic through the Paycheck Protection Program. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images) Mandel Ngan/Getty