Ask Our Experts: Existing PPP Funding
Q: When should a hemp operator plan to apply for the Paycheck Protection Program (PPP)?
By William Sumner, Hemp Content Manager, New Frontier Data
A: The Paycheck Protection Program (PPP) remains a vital lifeline among federal COVID-19 relief measures intended to sustain commerce in the United States. As part of the CARES Act, the PPP provides up to $10 million (or 2.5x the borrower’s average payroll costs) in forgivable loans through third-party SBA certified lenders to help businesses keep their workforce employed.
The loans cover expenses such as payroll costs, costs related to the continuation of group health care benefits, employee salaries, mortgage interest, and rent payments under lease agreements prior to February 15.
The program has proven to be incredibly popular; the initial funds allocated to the program were depleted within weeks. By April 27, Congress allocated an additional $310 billion to keep the program afloat.
By the end of May, some 4.4 million loans had been dispersed, totaling $510.2 billion. According to CNBC, as of June 2, approximately $120 billion in PPP funding remained. Nevertheless, any hemp operators expecting to apply are advised to act quickly. There is no guarantee how long the funding will remain available, nor any solid expectation whether Congress will pass additional funding.