Yes, you can cancel your application and reapply as long as you haven’t received the PPP loan. Reapplying for the Paycheck Protection Program demands that once you are approved for a PPP Loan, you must cancel other applications you initially submitted.
Under the CARES Act, the Paycheck Protection Program was passed into law on March 27, 2020. On April 3, applications for the first round of $349 billion in small business emergency funding became available. Reports review that smaller community banks had birthed more than $1.8 billion in PPP loans by April 5.
This indicates that the resources have been directed to areas where they are relevant and necessary: smaller communities and smaller businesses. Note that you must speak with your lender to withdraw a PPP loan application. You cannot cancel an application that has already been received by your lender.
Once you’ve asked your lender to cancel your application, they will investigate before canceling with the SBA. This process may take a few days to complete.
SBA comes in after the bank or lending institution through which you applied approves your application. Once your application has been approved, you need to keep communicating with your lender to finish the process and obtain your PPP loan. If you haven’t gotten feedback from your lender or bank, you may reapply via another source.
Other PPP Loan Alternatives to Consider
Bridge Loans from the SBA
If your company has a connection with an SBA Express Lender, you may be eligible to get a bridge loan of up to $25,000 from them. The SBA Express Bridge Loan Pilot Program is intended to resolve the income gap through the EIDL program. The bridge loan is reimbursed in whole or in part with funds obtained via the EIDL program.
Amazon’s Neighborhood Small Business Fund
Only companies located in Seattle are qualified for this program. The requirements for this loan include:
- The business should have fewer than 50 employees or annual revenue of less than $7 million
- Expected to have a physical presence within a few blocks of Amazon’s Regrade, South Lake Union, or Bellevue office buildings.
- It needs to be accessible to the general public
- For business, you also should rely on foot traffic
Economic Injury Disaster Loan Program
The Economic Injury Disaster Loan program has been going on for some time, but it has undergone a few changes as a result of the passage of the CARES Act. The EIDL loans are intended to assist companies that have suffered financial damage as a consequence of a catastrophe.
The EIDL has undergone two major changes: borrowing costs for businesses have been lowered to 3.75%, and companies can now obtain up to $10,000 ahead of time on their loan.
Small Business Grants on Facebook
Do you hire 2 or up to 50 people? Has your company been in existence for at least one year? Then you might qualify for a Facebook small business grant, which could also cater for other expenses; covering rent, and keeping your workers on the payroll. Regardless of that, you must be in a specific area as declared by Facebook.
This allows individual states to create their plan to mitigate the financial consequences of coronavirus (as evidenced by many governors’ opposition to President Trump’s Opening Up America Again plan). Many states had initiated economic assistance initiatives to help people, families, and companies in getting through this difficult period.
Reapplying for the Paycheck Protection Program is allowed if you have not obtained a PPP Loan. Navigating through such cases can be challenging, but it is not unattainable. One of the impactful ways to remain ahead of the hurricane is to interact with other company owners.