The deadline to apply for PPP Loans is June 30, so you still have time to start the application process and get funds that could represent a lifeline for your small business.
While the rollout of the Paycheck Protection Program (or PPP for short) has been far from perfect and even stirred some controversy, it is an interesting financing option for small-business owners who are grappling with the impact of the coronavirus pandemic.
PPP Loans: Everything You Need to Know
From requirements for forgiveness to deadlines and possible extensions, below you will find the most relevant facts you need to know if you are planning to apply for a Paycheck Protection Loan.
What Are PPP Loans?
The Paycheck Protection Program is a measure established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Implemented by the Small Business Administration (SBA). The program is geared to help small-business owners by providing them with funds to pay for payroll and other expenses such as utilities and interest on mortgages. PPP Loans can be forgiven as long as the loan proceeds are used in accordance to certain guidelines (see below).
Quick PPP Facts
Originally, the requirements to forgive a PPP loan were a little rigid, but they have been modified, smoothing the path for small-business owners to qualify more easily for loan forgiveness. These modifications are law since the beginning of this month thanks to the Paycheck Protection Program Flexibility Act (PPPF). These are the most relevant facts you need to know:
- The amount of the PPP Loan that small-business owners must spend on payroll is 60% (before it was 75%). The rest can be used to pay for utilities, rent and interest on mortgages.
- Borrowers now have 24 weeks to use their PPP Loans (previously they had eight weeks)
- The deadline to rehire workers in now December 31, 2020 (the original deadline was June 30, 2020)
- There are new forgiveness exemptions.
- Extension of repayment terms from two years to five years
You can read a detailed rundown of all these new, more flexible provisions here
There Will Be an Extension of the Deadline to Apply for PPP Loans?
According to SBA data, the Paycheck Protection Program still had almost $130 billion in unallocated funds as of June 20. With this fact in mind, some senators have proposed extending the deadline to apply to PPP Loans to December 30, but at the moment this is only a possibility. If you plan to apply for a PPP Loan, it’s best is to do it now, since extension is far from certain.
More PPP Resources
We have covered PPP Loans extensively to keep you updated about this important measure for your small business. Here are some posts you may find useful to learn more:
Uniko Biz Solutions is your competent and dependable business partner. With our broad array of alternatives, you can rest assured that we have the right financing option for your company.
We are located in Riverside California. Get in touch today either by email (firstname.lastname@example.org) telephone (888-698 6456), or social media (Facebook, Twitter) and learn how we can help you take your business to the next level.