Nearly 2,400 loans have been approved for small businesses, nonprofits and faith based organizations in Montana through the second round of the Paycheck Protection Program.
The U.S. Small Business Administration’s most recent report shows more than $35 billion worth of PPP loans had been approved nationwide as of January 24. Nearly $160 million of that went to Montana.
The average loan size in the U.S. was $87,000. Accommodation and food service, construction, and manufacturing were the top three industry sectors to receive PPP dollars.
PPP distributed over $500 billion worth of government backed loans to more than 5 million small businesses between April and August last year.
Loans through PPP 2.0 are available to both first time applicants and returning borrowers.
But second applicants must prove a certain amount of economic hardship to be approved. They also need to have 300 or fewer workers as compared to the original PPP eligibility requirement of 500 or less.
Loans with the second round of PPP are still forgivable if at least 60 percent of the loan goes toward payroll, and there’s more flexibility with how the small business spends the other 40 percent. Any part of the PPP loan that is not forgiven must be paid back, either immediately or in the form of a two year, low interest loan.
U.S. Congress included more than $280 billion in new funding for the Paycheck Protection Program in the stimulus package it passed in December.
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