More Funding Coming For PPP

With Congress set to allocate an additional $310 billion into the small-business Paycheck Protection Program (PPP), solution providers are lining up to make sure they get access to the funds.

Solution providers said they are grateful that the federal government is once again coming to the aid of small businesses with the $310 billion. That comes on top of the initial $349 billion for the PPP, which ran out after just two weeks.

Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech Enterprise, No. 101 on the 2019 CRN Solution Provider 500, said he is glad to see Congress once again coming to the aid of small businesses and technology solution providers.

“You have to give tremendous credit to the federal government for stepping up and putting these programs together to help support the American small business, the American people and everyone that has been impacted by this pandemic,” said Venero.

The PPP, part of the federal government’s $2.3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides loans for up to two months of payroll costs plus an additional 25 percent for businesses of 500 or fewer employees with a cap of $10 million. Much of the 1 percent interest rate loans could be forgiven if businesses do not lay off workers and utilize the funds for payroll and other designated purposes

One channel executive, who did not want to be identified, said the funding is a smart investment given that it will prevent layoffs and save billions of dollars in unemployment funds. “Providing this lifeline keeps small businesses intact and their employees off the unemployment line,” he said.

Even with the $310 billion in additional funding, it is almost surely going to run out in just a few days, said solution provider executives who have battled for a share of the funds and have yet to receive approval. “There is already a backlog,” said one channel executive of the mad dash to obtain relief. “I would expect these new funds to also run out quickly.”

The Small Business Administration (SBA) has confirmed that it has approved 1.6 million PPP loans so far totaling $342.2 billion. “There are 30 million-plus small businesses in the U.S.,” said a channel executive. “Maybe 10 percent of the businesses that needed this got it in the first round.”

Solution provider executives contacted by CRN cautioned that those reaching out for funding need to put in place strict measures to ensure full compliance with the guidelines of the program. “As with any program of this size, there is always the potential for fraud so solution providers need to make sure that they adhere to all of the guidelines that come with the program specifically, the potential relief,” said one channel executive. “The government has the right to audit any of these loans and ensure that any amounts forgiven were used under the guidelines provided.”