Area lenders are gearing up for another round of funding from the Paycheck Protection Program, which Congress passed last month as part of a smaller stimulus bill.
Clearwater Credit Union and MoFi have been tapped to help qualified borrowers access the loans.
“From rural chambers of commerce to childcare facilities, restaurants, Main Street businesses and independent contractors, we’ve seen an overwhelming amount of interest from both first- and second-time applicants,” said Dave Glaser, president of MoFi. “It’s a testament to the urgent need for economic relief in our region.”
The relief package includes $284 billion for the PPP program, which provides forgivable loans to help businesses keep their workforce employed during COVID-19. Loan funds can be used to cover payroll costs, mortgage interest, rent, utilities and other operations expenses.
Under the rules of the PPP funding, borrowers can access a second draw if they can demonstrate a 25% reduction in gross receipts between 2019 and 2020. They can have no more than 300 employees.
Glaser said MoFi provided nearly 1,300 PPP loans to businesses in Montana and surrounding states last year. The average loan size was $26,000.
Since the program reopened this week, he said MoFi has heard from hundreds of applicants with an average loan request size of just over $20,000.
“We’re excited to be working alongside banks and credit unions in our communities to ensure that everyone who needs a PPP loan is able to get one,” he said.