The paycheck protection program (PPP) is an SBA- supported loan that came into aid after the COVID 19 pandemic. The program has been helping small businesses retain their workforce. During their previous phase, the last loan disbursed attracted millions of businesses struggling in the wake of the COVID 19 pandemic.
The program provides up to ten million dollars per borrower regardless of your business status. For instance, business owners around Flower Mound TX received 1,377 loans that led to a reported retainage of 11,525 jobs. The loan has an interest of 1% and a maturity of 5 or 2 months, depending on the issue date. Nevertheless, the program’s payments can be deferred by the program, up to even ten months after the agreed period.
Are you a small business owner and still struggling to keep your business running? You can still apply for a new potentially forgivable loan. All small businesses are now eligible for the PPP. The program reopened last month after the new coronavirus relief package signed into law at the end of last year included 284 billion for the program. Among the program’s advantages is that the loan can be forgiven depending on how you utilize the funds and eligibility. The loan can be fully forgiven if you use it on payroll costs, rents, interest on debts, and services during the enclosed period after the loan’s funding.
To reach out to small businesses, the program has come up with new rules and guidelines. Among the rules is offering loans to companies with less than 20 workers and sole proprietors only. This guideline will ensure that small businesses that cannot receive loans from banks are catered for. Meeting the PPP requirements has now been made more comfortable, and more small businesses will be suitable for the Coronavirus aid loans than any preceding SBA loans.
The expansion of lists for those qualified for the loan is good news to small businesses. All business structures can qualify this time around, including S-corps, LLCs, C-corps, Faith-based organizations, 501(c)(6) organizations, Veteran groups, Private nonprofit businesses, Independent contractors, and Tribal groups. Besides your business structure, you will have to provide some other information concerning your business, like monthly payroll costs, citizenship status, your business location, description of your business, and bank statements for the company. If you took a loan with the paycheck protection program the last round, you would have to make sure that you have used all the funds from the first round and that you do not have more than 300 employees in your business.
The paycheck protection loans are different from economic injury loans that are still being offered in selected areas that have undergone financial loss due to COVID 19. Unlike other programs that must be paid the loan in full, the PPP loans are potentially forgivable. In short, all small businesses around towns in US states and territories example, Flower Mound TX, can apply for a loan. If your business is on the verge of collapsing due to the pandemic, you can still think of progressing with the paycheck protection program loans.
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