DAYTON, Ohio (WDTN) – More money will soon be available to small businesses struggling to stay open through the pandemic. The paycheck protection program started taking some applications today and will open for everyone next week.
“That alone is going to keep thousands, if not, hundreds of thousands of businesses from shutting down,” Dublin Pub Owner Steve Tieber said.
Tieber said the second round of paycheck protection program loans will be a big help across country. He said the restaurant industry is down as much as 50%, with some businesses on the brink of closing.
The Small Business Administration PPP loans are designed to keep employees on the payroll, and 60% of the funds must be used toward salaries and wages. The remaining can be used for rent, utilities and PPE.
“We can keep people employed, which is number one,” Tieber said. It can get us through the winter time, which is number two. It’s going to strengthen the business, it’s going to keep us employed, it’s going to keep people off unemployment, and these are all incredibly key factors.”
This time, the qualifications are different. Businesses must have 300 or less employees and experienced a decrease in revenue of at least 25% in one quarter in 2020 compared to that same quarter in 2019.
Shareholder with Brixley and Meyer accounting firm Alan Greenwell is helping businesses through the process.
“My advice is determine if you’re eligible, and if you don’t know how to determine it, reach out to your advisor, reach out to your bank, all the applications have to go through their bank, through their portal, who will then submit it to the SBA for approval,” Greenwell said.
The second round of PPP will cover 2.5x the cost of a business’ average monthly payroll cost, and 3.5x the cost for accommodation and food service industries.
Dublin Pub was a recipient of a PPP loan during the first round in spring 2020, and they will apply again.
He is encouraging all eligible business owners to apply as well.
“It could possibly get us back to where we were right before COVID,” Tieber said.
The SBA says $525 billion was lent during the first round of PPP last year. For more information on PPP loans, visit their website here.