Alabama bankers: Apply for federal aid while money remains, paperwork is lighter

Alabama bankers: Apply for federal aid while money remains, paperwork is lighter

HUNTSVILLE, Ala. (WAFF) - Alabama bankers say now is the time for small businesses to act if they haven’t yet received federal aid.

The Paycheck Protection Program (or PPP) is federal COVID-19 pandemic relief designed to help keep employees on the payrolls of small businesses.

It had a turbulent roll-out and the program ran out of money, but it is now funded and Alabama bankers said their workload is becoming more manageable.

Bank Independent senior commercial lender Tim Singleton said more paperwork is expected in June, as businesses start applying for loan forgiveness.

How the federal government wants banks to process that paperwork is currently unclear.

"There’s still one form that the government claims they’re going to provide to us, that’s supposed to happen sometime before the 14th of May,” he said.

President and CEO of the Alabama Bankers Association Scott Latham said he was not expecting the PPP to still be funded at this point in May.

​"I believe we’re burning about $2 billion a day, from what I’ve been told about the country, at that rate we’ll be going a few more weeks with this," he said.

Both bankers recommend owners touch base with local banks to see if their businesses are eligible.

Copyright 2020 WAFF. All rights reserved.