Alaska Companies Obtained $ 922 Million P3 Before Federal Well Dried Up
Nearly 5,000 Alaskan businesses received money from the Paycheck Protection Program before federal loan guarantees hit the legal limit this week.
The average loan amount was $ 190,000, for a total of $ 922 million in Alaska, according to the Small Business Administration.
The program, also known as PPP, is a big part of the CARES Act, the coronavirus relief bill passed by Congress last month. Thousands of businesses in Alaska see the low-interest loan program as a lifeline, especially because the loans turn into grants if the money is spent on payroll and other qualifying expenses. .
Alaska companies began receiving their P3 disbursements last week. Many others have submitted nominations.
Northrim Bank COO Michael Martin said on Thursday funds were still on the way for some candidates.
“If your loan officer – not just for Northrim, but a bank called you and said ‘yes we have authorization’ … (or) ‘your loan has been approved by the SBA’, then this is is just the workflow to get the money into people’s accounts as quickly as possible, ”Martin said.
Staff at Northrim and other banks are working long hours and will also be paying money over the weekend, Martin said.
As for requests that the Small Business Administration did not approve before the money ran out, Martin said the banks would keep them. Congress and the Trump administration are talking about another round of funding.
“I know there is probably a great deal of desperation, fear or panic for people who have not heard from their financial institution or have learned that their application has not been approved, but I think that there is more to come on this, ”Martin said.
SBA District Manager Nancy Porzio has confirmed that PPP applicants do not need to fill out the forms again, but she suggests they contact their bank to inquire about their status.
Another coronavirus relief fund that has run dry is the SBA’s economic disaster loans. SBA spokesman Kevin Wynne said people who submitted requests while the website was still accepting them should keep their confirmation numbers. If Congress appropriates more money, approved candidates will be in a queue to receive EIDL funds, which can include an advance of $ 10,000.
Alaskans also began receiving direct federal aid this week. That’s the payment of $ 1,200 per adult and $ 500 per child that most Americans will receive.
But many households and business owners have yet to get any financial help from the programs that were supposed to quickly offset the economic crisis.
Zia Boccacio of Juneau said her business, like so many others, is the product of creativity and a lot of hard work.
“For me, personally, this is my American dream,” she told US Senators from Alaska during the teleconference Thursday. Her voice broke and she apologized. “One that, without my being responsible, I saw slip from my hands.”