The race is on.
The federal Paycheck Protection Program is getting a second round of funding, and if the first round was any indication, there is going to be a mad scramble for funds.
PPP is a loan program run directly through lenders and designed to help small business owners pay their employees. Congress just approved the new funding and on Friday President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act), which appropriates about $320 billion in funding, with $60 billion set aside for small, midsize and community lenders.
The PPP’s initial go-around saw $349 billion disbursed in just two weeks.
David Adamson, VP and Senior Commercial Relationship Manager with Umpqua Bank’s Roseburg Community Banking Center, said in that first round of funding the bank helped nearly 6,800 small businesses get approved, totaling about $1.45 billion. Of that, close to $1 billion in funding had been received by applicants, he said.
Umpqua Bank has funded about 150 small businesses in Roseburg, totaling nearly $42 million from the PPP, Adamson said.
Umpqua has been gearing up in anticipation of the next round of PPP funding, working through roughly 4,000 additional applications between the end of the first funding round and now, he said.
“Demand for additional PPP funding is really high,” Adamson said. “With this next round, it’s really a race against the clock to help as many small businesses as possible before the funding is again fully committed, which could happen within just a few days of being available. With this in mind, Umpqua’s response has been to keep the pedal to the metal, so to speak, for those businesses that’ve applied with us but were not included in the first round of funding.”
One business that received assistance in the first round of funding is the Safe Haven Maternity Home in Roseburg. Safe Haven, established in 1992, provides housing and services for pregnant women and mothers and their babies who are in crisis.
The nonprofit has a staff of nine, said Executive Director Evie Kumar. The $23,000 the agency got in PPP funding will ensure that Safe Haven is able to make its payroll while leaving money in the coffers to cover program expenses, she said.
“Most importantly, that means we will still be able to serve the community,” Kumar said.
She geared up for the application process the day before applications were even available she said, calling board members one-by-one at night to get their necessary approval to apply. Kumar applied within an hour of the process being opened to the public, she said.
“The application was super simple,” she said, adding that the nonprofits bookkeeper was helping several other agencies apply, and that background knowledge helped. Kumar was notified the application had been approved within a week of submitting it, and on Wednesday she got the final paperwork to sign.
“I’m definitely grateful that we didn’t wait,” Kumar said. “I believe if we would’ve waited we wouldn’t have gotten it.”