New PPP loan window opens for Columbus small businesses

Small businessowners are watching with great interest as Congress debates another aid package to address the economic fallout from the coronavirus pandemic.

But groups that represent and work with small businesses want entrepreneurs to know that aid is available now. 

Beginning Wednesday, Feb. 24, the U.S. Small Business Administration is opening its $248 billion third round of Paycheck Protection Program loans, which are forgivable in many cases. For the first two weeks following the opening date, only businesses and nonprofits with fewer than 20 employees can apply. After that, the application window will remain open until March 31 or until funds are depleted.

This round is meant to help especially small businesses, and $1 billion is set aside for businesses and nonprofits in low- to moderate-income communities, the SBA said.

The agency also waived some restrictions for this round of loans. Entrepreneurs with a felony conviction within the past two years were barred from previous rounds of PPP loans, but will be allowed to apply during this round, provided they were not charged with a financial crime. 

The Economic and Community Development Institute (ECDI) is one of the organizations working with banks to distribute PPP loans for Columbus-area businesses. While the loans are available to anyone, the group is targeting businessowners in underserved communities. 

Businesses can apply for the loans on the group’s website, which also features information on other available aid. 

“Providing resources for businessowners who are underserved by traditional lenders is ECDI’s mission and, therefore, represent most of the entrepreneurs we serve,” Amee BellWanzo, the organization’s chief marketing officer, said in an email. “Immigrants and refugees are among those who are underserved, along with minority groups, women and low- to moderate-income entrepreneurs.”

ECDI is working with banks to distribute the loans, but BellWanzo said the group can’t yet disclose which ones.

The institute plans to coordinate with groups that work directly with immigrant and refugee communities to better communicate the availability of the loans, said ECDI founder and CEO Inna Kinney.

"They all have specific organizations that resettle them here or provide services, and these organizations should be able to disseminate information," she said.

English is overwhelmingly the second language of immigrants and refugee businessowners, which creates obstacles to filling out applications for assistance programs, Kinney said.

Ohio-specific figures were not immediately available, but the SBA has approved more than $133 billion worth of loans through Feb. 18 for more than 1.8 million recipients.

The nonprofit journalism organization ProPublica has a searchable database of all PPP recipients on its website.

Employee retention tax credits also are available to small businesses that saw their revenue fall in 2020 compared to 2019, said Homa Moheimani, a spokesperson for the Ohio Restaurant Association.

“We are continuing to work on our advocacy efforts both at the state and federal level,” she said in an email.

While the pandemic's true economic toll may not be clear for months, dozens of businesses throughout central Ohio have shuttered in the past year. And businessowners have reported problems applying for aid programs, which has advocates focusing on education.

Moheimani said her organization also is working with members who want to apply for PPP loans to walk them through the application process and provide information about how to have those loans forgiven.

An Ohio Restaurant Association information session is scheduled for Thursday.

pcooley@dispatch.com

@PatrickACooley