Chris Holman sat down virtually with Rob Scott, Regional Administrator for Region 5 of the U.S. Small Business Administration. Rob oversees the delivery of the agency’s financial assistance, technical assistance and government contracting activities throughout Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin.
This time around Rob was reporting in from Ohio. Rob had served the SBA for a 6-week stint during March and April in their “WAR Room” battling for the first round of the Paycheck Protection Program funding. As the first round of PPP went quickly, the second round of PPP $320B is going out with approximately $129B left as of mid-June with a closing date at the end of this month. Average loans this time around are $70,000 which means the smaller businesses which the program was really intended for are the ones tapping into the funds. Lending slowed because of perceived ability for businesses to comply with guidelines, but the Flexibility changes from June 5th, have given companies options. Use of the money can run through the end of calendar year. With 115K companies assisted roughly $17B going out makes the Great Lakes Region top for the PPP loans, Rob sees the lending institutions certainly doing their job.
Watch full interview below!
Rob also shared further information with MBN:1. Top things to know about PPP
- In the region, more than 686,000 small businesses and non-profits have been approved for PPP loans;
115,000+ in Michigan – they are keeping their employees on payroll with this assistance
- More than $129 billion remains available for those impacted by COVID-19; closing date still is June 30, 2020
- SBA continues focus on outreach to underserved audiences (he’ll go into some of the specific efforts
in Michigan and the region)
- More flexibility now per the PPPFA, such as the extension of time to spend loan proceeds from eight weeks
to 24 weeks, longer term and the expansion in the percentage of funds that can be used for non-payroll
expenses (60/40 now)
- Information available at www.sba.gov/paycheckprotection
2. EIDL/EIDL Advance has re-opened for all; apply at www.sba.gov/disaster
3. Traditional SBA programs remain in action with some expanded benefits, including debt relief, more funding
to partners that offer support, etc.