Deadline nears for PPP loan requests
DAYTON, Ohio — Advocates of the federal Paycheck Protection Program have a simple but urgent message: Time is of the essence.
“These loans are about ready to expire,” Rep. Mike Turner, R-Ohio, said in a virtual news conference this week, a warning echoed by business and banking leaders who joined him in the online meeting.
“Don’t assume you don’t qualify, and don’t assume it’s hard,” said Shon Myers, president and CEO of Farmers & Merchants Bank.
Farmers & Merchants has processed PPP loans as small as $3,000 — which can go “a long way” for a small business, he said.
The process has become “really simple,” Mr. Myers added. “You can have your money in two to three days. It’s not a long drawn-out process.”
For qualifying businesses, this is money that can be used to meet payroll and other business expenses — and new deadlines to apply are approaching quickly. Small businesses and nonprofits with fewer than 20 employees and sole proprietors can apply for second draw PPP loans through Tuesday.
The program remains open to all eligible entities from Wednesday through March 31.
Sole proprietors can use PPP money to pay themselves, and the hallmark of the program is “an easy forgiveness process.”
“Don’t take it for granted,” said Jeff Hoagland, president and CEO of the Dayton Development Coalition. “Someone else will take the money.”
Mr. Turner said his congressional office has assisted more than 200 small businesses, with more than $800 million in loans having gone to Dayton-area businesses since the PPP project’s inception. It is possible to reach the $1 billion benchmark for Dayton-area businesses, he believes.
The loans “have assisted in preserving over 35,000 jobs in our community, and there are still monies available,” Mr. Turner said.
Maggie Ference, senior vice president and Small Business Administration director at Huntington National Bank, said the PPP program is not a “normal loan process.”
“There are no guarantors,” she said. “There is not an expectation for collateral support. There is no analysis for capacity for repayment. Don’t be concerned with your credit score heading into this opportunity.”
Applicants don’t need a business relationship with a bank to get started, Ms. Ference added. Business payroll dictates the loan amount, but funds can also be used for other reasons: mortgages, rent, utilities and other operational expenses.
“This is a truly once-in-alifetime opportunity to get access to these funds,” Ms. Ference said.
The Paycheck Protection Program was first established by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, to provide forgivable loans to small businesses impacted by coronavirus shutdowns.
The program has also been funded through a subsequent piece of coronavirus relief legislation, the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA).
“Our advice to those sitting on the fence is apply now before the March 31 deadline,” said J.T. Thurston, a spokesperson for the Ohio Bankers League. “We do not know what the future holds, and it remains uncertain whether there will be any further extensions to the program.”