New wave of Colorado PPP loans could help small businesses during pandemic
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DENVER (KDVR) – A third wave of Paycheck Protection Program (PPP) loans reopened this week in Colorado to new borrowers and some existing PPP borrowers.
The first draw for PPP loans opened on Monday and the second draw for PPP loans on Wednesday. The PPP will open to all participating lenders shortly thereafter.
Until March 31, $ 284 billion has been authorized for distribution to small businesses in need of job retention funds and other spending. Only certain existing PPP borrowers can apply for a second draw PPP loan.
“The PPP has been an incredible boost for small businesses over the past year, and this second wave of financial support will especially be a boost for businesses in rural and underserved communities,” said Dan Nordberg, National Director SBA Rural Affairs and Region VIII. Administrator. “With targeted openness, SBA prioritizes and extends assistance to affected business owners who need it most.
In this third wave of PPP, a small business is eligible for a Second Draw loan if it has used the entire amount of its First Draw PPP for authorized uses, has more than 300 employees and can justify a reduction of up to minus 25% of gross revenue between comparable quarters in 2019 and 2020.
The SBA has said it is prioritizing and expanding assistance to affected business owners who need it most.
In 2020, 109,170 PPP loans were distributed to small businesses in Colorado, for a total of approximately $ 10.4 billion. The average loan amount was $ 95,287.43.
“The pandemic struck, and we thought it was going to go away within the next two weeks,” said Alex Vazquez, owner of Ontrack Builders in Aurora. “If COVID had never happened, the business would have reached its first million dollars in growth. “
Vazquez did not apply for a PPP loan in 2020, confident he could keep his employees at work. The pandemic continued to hit the construction industry hard, and it was only after the deadline that it had to move its employees to part-time work. Vazquez applied for a First Draw PPP loan, the first thing this week.
“I was pretty much ready already,” Vazquez said. “I kept reading and reading and I just hope we get our chance.”
Vazquez hopes to know if it will be approved within the next two days. If he does, he will be able to put 15 employees back to work full time.
“Let’s just say I can’t wait to get them all together to let them know we’re back, and we’re all going to function as we were a year ago,” Vazquez said. “This look is going to be priceless.”
For more information on SBA Small Business Assistance, visit sba.gov/ppp.
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