Almost everyone is affected by this pandemic. The US economy is hit by the lockdown, many companies are still struggling. Most of these companies, are small businesses with employees less than 500 people.
Follow the passage in the 2020 US Federal government Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Paycheck Protection Program (PPP) aims at helping businesses retain workers.
What is PPP Loan
The PPP loan is a $699 billion business loan program funded under the Small Business Administration. It is intended to provide businesses eight weeks of payroll and other costs to help businesses pay salaries and rehire workers. By dosing so, those small businesses can remain viable and make domestic economy better off.
Other than the size requirement (no more than 500 employers), business owners must prove that that their businesses have been negatively impacted by the coronavirus. You have to make it clear from your PPP application.
How to apply for PPP
As mentioned before, PPP is under administered by SBA. You can apply for PPP loan form any of the 1800 participating SBA approved 7(a) lenders. Do not use any other road to apply, since scammers are already going after small business owners.
It’s easy to apply for PPP. You should download and fill out the application form on the SBA website, which includes instructions. Prepare necessary information to complete the application form by following instructions.
Pay attention, PPP loan has reopened after President Trump signing legislation July 4, 2020. The new deadline has extended to Aug. 8, 2020.
PPP Loan forgiveness
Important changes are made to law with the signing of the PPP Flexibility Act on June 5, 2020. All or part of the loan could be forgiven if you keep all full-time equivalent employees or rehire them within 24 weeks of receiving the loan.
You must request for forgiveness of your loan by applying with one or two forgiveness application forms.