NASHVILLE, Tenn. (WTVF) — Another lifeline is on the horizon for Nashville businesses.
“For some small businesses, for many of them, this could be the difference between keeping their doors open for the long term or unfortunately closing their doors,” said Nashville Area Chamber of Commerce's Chief Growth Officer, Stephanie Coleman.
The Paycheck Protection Program will reopen next week offering businesses payroll assistance.
“Use of the proceeds is to pay the employees, to keep them employed, keep the economy going, try to prevent small businesses from laying off people,” said Redstone Federal Credit Union's Manager of Business Underwriting and Servicing, Neil Carville.
The latest coronavirus stimulus package slated $284 billion for small businesses through the PPP.
“It does provide relief and on the back end the biggest benefit is the possibility that this loan will be forgiven," said Carville.
But this new round comes with a different application roll-out. “SBA is really emphasizing access to capital for minority and women-owned businesses so they are reserving the first few days of PPP loan applications for entities that lend to small diverse businesses,” said Coleman.
Applications for those businesses begin Monday. Second Draw applicants can begin applying Wednesday.
This round of PPP also covers new expenses. “So that would include things like cloud computing or new H-R accounting software programs,” said Coleman.
Generally, borrowers must not have more than 300 employees and have experienced a revenue reduction of 25% or more in 2020. For more information on the SBA Paycheck Protection Program, click here.