Payroll Protection Program Loan Guidance
If you are a small business owner, you probably have heard about the Payroll Protection Program or PPP loans. These loans are for small businesses to help them cover payroll and other operating costs for 8 weeks as we all navigate this COVID-19 pandemic.
The first group to apply were small businesses on April 3rd. There were millions of businesses trying to get $349 billion dollars. While that sounds like a lot, the money was actually gone in a week and half!
The US Congress is working to approve another $310 billion dollars.
We have helped our clients get MILLIONS of dollars through these PPP Loans.
KEY POINTS
The loan is forgivable if you use the money as intended
To be eligible you need to be a small business, independent contractor, sole proprietor, or non-profit that was in business prior to Feb. 15, 2020 with 500 employees or less
There is no credit check of the owners when you apply
There is no personal guarantee on these loans
There is no collateral on these loans
Any portion of the loan that is not forgivable will stay at loan at 1% interest for 2 years
The loan amount is 2.5 times your Average Monthly Payroll ** more then just payroll can be included in this number
If you haven’t applied and would like some help here are some resources for you:
Webinar on how to get the maximum amount in minimum time for the PPP loan
A digital course I created to help business owners have everything they need to apply for the PPP
If you have received your PPP Loan money and need help making sure you spend it correctly, we are working to provide helpful resources for you. Stay tuned!