Small Businesses Seek Help From Second Round Of PPP Loans
SANTA BARBARA, Calif. – For struggling small businesses, help is here with a second round of money from the federal paycheck protection program.
This week, the small business administration is preparing to roll out the second round of PPP loans.
As new COVID-19 cases increase as Santa Barbara County enters its fifth week in the regional stay-at-home order, the federal government is extending a helping hand to small businesses that are suffering.
Stuck with only takeout options for the foreseeable future, Shore Beach Cafe manager Cameron Pyles is anxiously awaiting help.
“We only do about 20-30% of our normal activities,” he said.
The PPP offers low interest loans to qualifying small businesses that can be canceled if certain criteria are met.
There is $ 284 billion available for this round.
“We don’t know how long this is going to last and we need it to bring the staff back,” Pyles said. “We need it for the uncertainty of the longevity of everything.”
During the first round of PPP loans, the locally owned American Riviera Bank supported 12,000 jobs across the central coast.
“Last year we made over 615 loans totaling over $ 117 million,” said Laurel Sykes, executive vice president and chief risk officer.
Businesses that have already received a loan will be able to reapply.
“You have to prove that you experienced a 25% reduction in your income in a quarter of 2020 compared to 2019,” said Sykes.
Last year, the first round of PPP loan financing ran out in just 10 days.
This time around, most restaurant chefs think it will give their business a boost.
“If it’s one, two or three months, it would at least help us survive and get back on our feet,” Pyles concluded.
The program will end on March 31 or earlier if the money runs out the same way it did during the first round of the program.
Banks believe they can start sending out these loan applications next week.
Companies can apply on American Riviera Bank website.
Business / California / Community / Coronavirus / Economy / Health / Lifestyle / Money and business / Outdoors / Santa Barbara – South County