BENTONVILLE, Ark. (KNWA/KFTA) — New guidelines have been added to the Small Business Administration’s paycheck protection program.
Arvest Bank loan manager Chris Thorton said the new rules under the Flexibility act will loosen some of the restrictions for businesses.
Through the Paycheck protection program, $669 billion was made available for businesses.
According to the SBA, the program was designed to help businesses keep their employees working through the coronavirus pandemic.
Thorton said the new amendment gives those businesses more flexibility in using the money.
First off Thorton said borrowers had 8 weeks to use the loan, which has been extended to 24 weeks.
Originally, 75% of the money had to be used on payroll while the remainder could be used on rent, utilities and other expenses.
That was dropped to 60%.
Thorton said with proper documentation, businesses won’t be penalized if they can’t rehire all of their staff.
Owner of Susan’s restaurant, Lucius Mhoon said he wished these decisions were made earlier.
“The rules are better, but the bad things is that they didn’t change the rules until about 7 weeks after we got it. So we already used 7 out of our 8 weeks of money trying to keep our employees paid and employed.”
Thorton said guidelines are still coming out but recommends businesses to keep good records of how every penny is spent so they have a better chance of having the loan forgiven.
As of June 12, over 41-thousand loans have been approved in the state of Arkansas totaling over 3.28 billion dollars.
There is still some money up for grabs businesses have until June 30 to apply for a loan.