A new stimulus package just signed into law by President Trump will give a boost to small businesses across the country.
The bill provides money for increased testing and gives money to hospitals -- but it sends the majority of cash to small businesses, including many here in Georgia.
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“It has definitely been a tough challenge because not only the fact that their business activity has diminished or completely stopped in most cases but this happened in a relatively short period of time,” said Terri Denison, Georgia Director of the Small Business Administration.
She told us the new stimulus package provides funds to help small businesses in two ways.
Business owners can obtain loans through the Paycheck Protection Program or by applying for an Economic Injury Disaster Loan.
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The PPP ran out of money after the first stimulus package, but this latest stimulus delivers new funds to the program.
"We know there are lot of others out there that are looking to obtain assistance,” said Denison.
If you would like to apply for a PPP loan, call your bank. To apply for an Economic Injury Disaster Loan, go to SBA.gov.
$60 billion set aside for female-owned and minority-owned businesses
The new stimulus package includes $60 billion set aside for female-owned and minority-owned small businesses. The goal is to better serve those who don’t have strong relationships with large banks.
“It’s eclectic, the food is great, the staff is great and we treat our customers the way we want to be treated,” Chris Coker-Jackson bought Daddy D’z BBQ on Memorial Drive two years ago. This is normally her busy season, but this year she laid off four employees.
“Without my employees I don’t have a business, Daddy Dz doesn’t exist,” said Coker-Jackson. “They cook the food. They take care of the customers.”
Coker-Jackson applied for a payroll protection program loan with Wells Fargo but when she didn't get funded, she changed her strategy.
“(I thought) I’m going to have to search for a small bank that I can have a relationship with,” said Coker-Jackson. “So that when things like this happen, or if I have a need, I’m not just a number of so many million.”
Mark Lupo, with the UGA Small Business Developement Center, says this second round of stimulus money has $60 billion in payroll funds set aside specifically for smaller lending institutions.
"This one is just to ensure that they do have access," said Lupo. "Or let's say easier access to securing some of the PPP funds."
Lupo says for many of the small businesses he deals with, owners say this second round of payroll protection funding is crucial and needs to come quickly. Coker-Jackson agrees.
“We need help way more than these chains. I’m not saying they don’t need it, but if we close, we may not reopen,” said Coker-Jackson.
Lupo recommends business owners apply for both the PPP loan and the EIDL or Economic Injury Disaster Loan. He says you don’t have to use it, but get your application in to be in line for help, when the second wave of funding is released.
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