SIOUX CITY, Iowa (KCAU) – Relief is once again on the way for business owners as the second round of the Paycheck Protection Program (PPP) kicks off this week.
A second coronavirus relief loan will increase the chances that one Siouxland barber shop will survive.
“It saved me last time. Well, it helped me cover all my bills and stuff and it took care of some of my taxes and just helped me stay afloat,” Clyde Shinall, the owner of Francis Building Barber Shop, said.
He said he hopes the money will help keep his clippers clipping.
“Last year, it helped big time because, you know, as you know, the pandemic started and you know, everything was behind. So, I was able to catch up, like, on my rents. On my barbershop rents. I was able to pay like three months here, which I’m hoping to do the same with this one because actually, it’s still kind of slow around here with the pandemic,” Shinall said.
Davide Brown of Heritage Bank said to qualify for the PPP, businesses will have to have seen a drop in revenue.
“If I had second quarter of 2019 I had “x” amount in revenues I have to be able to show in 2020 in that same quarter that I had 25% drop in revenues during that quarter,” Brown said.
At least 60% of the proceeds have to be spent on payroll.
Brown said businesses with 500 or fewer employees are eligible. But, this year qualifications have expanded, and it’s best to work with your financial institution to see if you qualify.
Shinall said applying was a simple process.
“Go to wherever you bank at, wherever you got your business at. Go to your banker they can help you more. Even if you think you don’t qualify just go see if you qualify because it can help. You get that little loan and it’s total forgiveness you know it’ll help you though this pandemic,” Shinall said.
Brown said if qualifications of the loan aren’t met, the balance is due in five years at a 1% interest rate.
The Small Business Association will initially only accept applications submitted by community financial institutions (CFI’s). It will then begin accepting applications from all it’s lenders, like banks, after this week.