Anecdotally, it seems that almost every member of the Home Furnishings Association tapped into the Paycheck Protection Program.
For any qualifying furniture retailers that didn’t, it’s not quite too late. The deadline for applying to the small business lending program ends June 30. If you want to apply, you should contact your lender today.
If you need to find a participating lender, you can use the Small Business Administration’s Lender Match tool here.
Many HFA members found PPP success by working with community banks where they already had relationships.
More than 4.5 million loans have been approved through the PPP, with more than $500 billion disbursed. The average loan size is $110,000. Approximately $100 billion remains available.
PPP Flexibility Act made great improvements
The Paycheck Protection Program Flexibility Act, signed into law June 5, greatly improved the original PPP. The loans, available to businesses with fewer than 500 employees, carry a term of five years at 1 percent interest.
The loans can be fully forgiven, however, if at least 60 percent of funds are used for payroll expenses and no more than 40 percent for mortgage interest, rent or utilities. Funds also must be used within 24 weeks or by December 31, whichever comes first.
Businesses that have already received a PPP loan are not eligible to apply for another. Some members of Congress are considering extending the program and allowing second loans, but that won’t happen before June 30, if at all.
Another SBA program that’s open until the end of the year is the Economic Injury Disaster Loan. Businesses may receive both the PPP and EIDL.
The Federal Reserve Board last week launched the Main Street Lending Program after amending its original terms.
