Second round of PPP loans begin this week
GRAND JUNCTION, Colo. (KJCT) - The second round of paycheck protection program loans has arrived. Banks will begin processing new PPP loan applications this week, with some starting as early as Tuesday.
The first round of these loans begin in April just after the pandemic hit. The program helped businesses minimize their losses and retain employees in the early days of COVID-19. This second round of PPP loans is designed to help those businesses which are still struggling –– and there are plenty –– almost a year into the pandemic.
Timberline Bank will begin processing new loan applications on Tuesday. The bank helped more than 1000 businesses in the valley during the first round, providing more than 120 million dollars of PPP loans for businesses all across Western Colorado.
Some requirements are slightly different for this second round of loans.
“You’ll have to prove a 25% reduction in topline revenue, year over year for one of the quarters in 2020, as well as have less than 300 employees” explains Austin Smith, a Business Banking Officer at Timberline. “Some of our higher affected industries are still struggling significantly, and this second round of PPP is really aimed at helping those companies.”
Several industries are still struggling mightily due to COVID-19 restrictions, including hospitality and restaurants. Businesses that already received a loan in the first round this summer are still allowed to receive a second loan if they meet the requirements.
Suds Brothers Brewery in Fruita was able to retain all of its employees thanks to the first round of PPP loans.
“What the PPP did for us is it allowed us to keep our employees whole, which is a huge asset,” recalls Fred Martinez, one of the brewery’s owners. “If you you keep your team together, you keep winning.”
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