DULUTH, MN-- Applications for the second round of Paycheck Protection Program (PPP) loans opened on January 11. However, many small businesses are still trying to make sure they don't have to pay back their first PPP loan.
The Paycheck Protection Program which was started last March as a part of the CARES Act aimed to provide loans to small businesses in order to pay employees and then those loans would be forgiven.
Banks across the Northland are working with small business to forgive the loans. Jon Birkeland Senior Vice President and commercial team leader at Bell Bank says the process requires patience as well as some organization.
"My message to small businesses is to be patient," said Birkeland.
"You need to be on top of the paperwork and make sure you're in good contact with your banker."
Birkeland also suggested that small businesses organize and maintain good payroll records. Saying that and a 941 quarterly payroll report is crucial in the forgiveness process.
Birkeland also stressed that if your loan amount was less than $150,000 then there is a streamlined process that was recently approved by the Small Business Bureau.