Businesses began applying on April 27 for the second round of loans from the Small Business Administration’s Paycheck Protection Program.
The original round, worth $349 billion, ran out in less than two week. President Donald Trump signed a bill authorizing an additional $310 billion for the program.
The stimulus loans are designed to provide an economic lifeline for small businesses during the COVID-19 crisis. They’re meant to cover up to 10 weeks of payroll expenses, up to a maximum of $10 million.
Inc. notes that the loans “can be converted into forgivable grants so long as the company doesn’t lay off employees.”
More details of the program are available here.
The new round is expected to go quickly, just like the first. So if you plan to apply, experts advise doing so right away.
Congress is now discussing a possible third round.
Watch a Today video about the second round of funding: