Although the Paycheck Protection Program (PPP), created by the Small Business Administration under the Cares Act, was successful it came with its own issues. The long-awaited alternative program has come with several delays but has finally been opened. The new lender portal was created by the Federal Reserve’s Main Street Lending Program.
The difference between the PPP by the SBA and the new alternative offered by the Federal Reserve is the PPP is forgivable as long as you follow all of the guidelines, and the alternative is not forgivable. The term of the loan was increased from four (4) years to five (5) years but the loan sizes, however, have been reduced from $500k to $250k. The alternative loan has been created for small and mid-sized businesses where the Paycheck Protection Program was created for large and mid-sized businesses.
Each program comes with its own positives and negatives so if you are in the need for financial help for your business click the read more button to start learning a bit more about the alternative. And always remember do your research for what best fits your needs.