If your business has suffered during the pandemic, you’ve probably already learned about PPP loans. Perhaps you’ve had a hard time applying, or just haven’t been able to decide on whether you should apply. If so, you’re in luck. Last night, with four hours to go until the deadline for
Paycheck Protection Program applications, as well as about $130 Billion in unspent money, the deadline was extended to August 8th. This dramatic, surprising move adds an additional five weeks.
Why you can apply for PPP Loans until August?
This change in deadline likely comes because the US is still reeling from COVID-19, with new spikes in many states. (As a result, some states are being forced to slow their reopening efforts.) Businesses are still feeling the heat of the pandemic and losing revenue, either directly due to COVID safety measures, or indirectly. This extension also solves the problem of what to do with the unspent funds: continue awarding them to businesses that are truly in need of this kind of support.
Are PPP Loans right for you?
If you’re still mulling over whether a PPP loan might make sense for your business, here’s some basic information about eligibility. (Please note that this not an exhaustive list, and you should consult your HR services, financial advisors, or local lender for more details):
- Size: You must have fewer than 500 employees or meet the SBA’s definition of a small business.
- Operation dates: You must have been in operation on or before February 15, 2020. Essentially, you cannot have started operating after the pandemic hit.
- Revenue loss: You must be able to show that your business has been impacted by COVID-19, whether it’s new safety measures, state and local shelter-in-place rules, or just the general downturn in the economy.
- Criminality: Your business owner or 20% or more equity of the applicants cannot be currently incarcerated, on probation, or on parole. They also cannot be presently subject to an indictment, criminal arraignment, or other means which criminal charges are brought to the jurisdiction. Lastly, they cannot have been convicted of a felony related o fraud, bribery, embezzlement, or a false statement in a loan application or application for federal financial assistance in the last five years.
Steps to take if you’re applying for PPP Loan
HR and payroll companies generally agree that these loans are a great option for businesses that qualify and are in need right now. They might be one of the best HR strategies you implement during the pandemic. The interest rate is only 1% and you can apply for partial or complete forgiveness, depending on how you spend your funds. Check out MP’s previous webinar here that discusses PPP updates on forgiveness. If you’re interested in applying, reach out to your bank today. If you don’t have a go-to lender, the SBA has a helpful lender match system that you can access here.
Need help with the PPP? MP can help you gather the reports you need to apply. Call 978-338-3006, or schedule an appointment.
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