TAMPA, Fla. (WFLA) – The Senate approved a second stimulus package bill on Tuesday night – this one aimed mostly at small businesses.
The bill is worth $484 billion. The majority of that money is earmarked for small business loans through two programs.
About $310 billion is directed to the Paycheck Protection Program. Another $60 billion is for the Economic Injury Disaster Loan (EIDL).
There is also $75 billion for hospitals and medical resources including personal protective equipment (PPE) and another $25 billion for COVID-19 testing.
Specifically, the bill sets aside $60 billion of the $310 billion for community banks, credit unions and smaller lenders with the hope that they can get money to the smaller business owners who really need it.
8 On Your Side breaks down some recommendations from experts to help you get money for your small business:
- Go through your bank/lender, not the Small Business Administration.
- If you don’t have an existing lender, try to use one that is already SBA-approved. It’s not required, but they will likely be familiar with the process.
- Make sure you have all your documentation ready.
- Be quick! Many lenders are already holding applications that were never approved during the first round of funding.
Kevin Corado just opened Tampa Barbers last March. He thinks that is hurting his chances to get the loan approved.
“Some of them will say you have to have filed taxes for at least a year,” Corado said. “But I just hit a year, so it’s kinda hard being a brand new business.”
Corado is still waiting on his loan to be approved, and he says the other barbers are working odd jobs to make ends meet. He’s weathering the storm, but getting very wet in the process.
“I’m very smart with my finances, so I got a little savings to help hold me off,” Corado said. “But for how long, you know?”
You can learn more about the PPP program on the Small Business Administration’s website.