Colorado, Francis Padilla, U. S. Small Business Administration discussed on Colorado's Morning News with April Zesbaugh and Marty Lenz
The pandemic continues to put a serious crush on businesses trying to survive. But the good news is the U. S. Small Business Administration is working with the Treasury to Reopen the paycheck protection program. Also known as P P P. Let's get into it with SP a Colorado district director Francis Padilla. Thanks for joining us. Thank you very much for having me. How important would you say these peopie P re sources are for small businesses in our state? Specifically, can you quantify it? Oh, absolutely. They're incredibly important. I don't know if you know this, but like 99.5% of all private business in Colorado is considered small. And pre pandemic times with employed over a million people. So you know small businesses really big business and Colorado and some of our businesses are still hurting and need that additional assistance to get them through the hump that was caused. You know, when the injury for the From the pandemic Francis, I'm sure you're glad to get anything But is there specifically maybe a dollar amount for something that you think would really make an impact in a difference for for folks that have small businesses. It really depends on what their needs are to get through the economic injury that P p p specifically is to help people get through payroll times. It's really for payroll and other kind of operational on eligible expenses in the way that we determine the loan amount is Based on an average of their peril time multiplier factors, So you know, we know that some of the businesses in our food and accommodation sectors were incredibly hurt, so they're factor is a little bit higher, so it really just depends on you know what the business is and what their need is soapy pp is one option. The state and other local governments have lots of other options. If there are Other needs from small businesses that we had 109,000 tpp applications in the first round. So we have a lot of Colorado but took advantage of that of that program. You talked about these being alone's What are the guidelines for using the P P p money and then paying it back? Does everybody have to pay it back? Or if you prove you're using it for us a payroll? Can you not pay it back? No, absolutely great question. It's actually set up to be a forgivable loan. It's a guaranteed loan, and the guarantee is 100%. So if having forbid somebody should default on the loan, there would be 100% guarantee. But the way that you can maximize forgiveness is to make sure that you spend at least 60% of those loan proceeds on payroll, ineligible payroll costs. And then we give you a little bit of a buffer of an additional 40% to spend on other kinds of operational expenses that Really do pertain to keeping your doors open Francis actually about a dollar amount, but I'll ask this. How How long would you like to see a program like P p p. Continue, I say into perpetuity. I know I'm being hyperbolic. But is it something you feel from your perspective? Obviously for those you advocate for should continue until there's some semblance of fully opened economy. Would that make sense? That absolutely does. And we're happy to administer Peopie people auras long as the lawmakers continue to give us allocations you know, SPH does have other core programs and resource is and under the new economic aid Act. We've actually increased those incentives as well. So if Tpp doesn't work for somebody because there needs really isn't payroll based We can always look back at some of the new incentives under our 78 program are 504 Loan program, Our micro loan program, where were increasing guarantee percentages? And we're also waiving fees for borrowers. And before we run. If a business maybe didn't apply in the first round, they think they might be eligible this time. What makes a business eligible for those peopie dollars? But there's really two programs that they can access if they never gotta pee pee pee in the first place. That program is really called the first stroppy pp. And it's very similar to all of the eligibility is under the care act. With the exception of the new law made, um more entities eligible. And it actually expanded the use of the proceeds in terms of what you can spend an operation costs so they would just go to one authorized P P. P lender and we can make sure to match them up the Colorado District office or they can visit SP a dot of backslash Lender match and actually put the information in and get matched with one on the second dropped a little bit different. You had to have already had a pee pee pee in the first round. We used the funds by the time you get the second one, and the criteria is a little bit different. So the employees maximum is 300 instead of 500. On. Do you actually have to prove that you had a revenue revenue reduction of at least 25% from some period in 2019, compared to some period in 2020 s p a Colorado district director Francis Padilla. Thanks So much for your insight. We appreciated. We're rooting for all small businesses. So thank you. Thank you. I'm good and for their 5 30 ahead of the newscast. Let's see how.