Updated: January 13, 2021 06:45 PM
Created: January 13, 2021 06:32 PM
ALBUQUERQUE, N.M. — Applications opened this week for the second round of Paycheck Protection Program loans, however there are some new changes this time around.
"The smallest and hardest hit businesses are at the front of line. That's the intention of this second round of PPP funding,” Metta Smith, with DreamSpring.
DreamSpring is a nonprofit lender in Albuquerque that specializes in helping small businesses.
“There was a new relief bill passed in December by Congress that allotted another $284 billion for this round of PPP lending, which opened on the 11th. And this round you have to demonstrate that your business saw at least 25 percent reduction in revenue compared to 2019,” Smith said.
There are $66 billion fewer dollars for round two of the forgivable PPP loans. Smiths said there is also a greater focus on smaller businesses. The first round of loans included businesses with 500 or fewer employees. This time around, loans will be given to businesses with 300 or fewer employees.
Smith said smaller lenders like DreamSpring get to disperse funds first.
"So, this week, we, along with 10% of the other lending institutions in the country that are considered a community financial institutions are the only ones who can be reserving funds on behalf of entrepreneurs. The program will open for my traditional lenders, such as banks later on,” she said.
Smith said there have been 400 applications for nearly $13 million in the second round of PPP loans just in New Mexico. Despite the demand, Smith said forecasts are showing they won’t run out of funds.
"Small business owners should get out and apply now because we don't want anyone to lose advantage should they run out earlier than we expect,” she said.
To apply for a loan, click here.
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