In the wake of the global pandemic, small businesses have especially been hit hard. Without the influx of income coming from customers and other forms of revenue, we’ve seen a huge number of small businesses being forced to shut down simply due to the fact that operating the said business became literally impossible to do. Some findings estimate that over 200,000 establishments across the country were forced to close up shop.
Fortunately, there is a way to help other businesses from suffering similar fates. The Paycheck Protection Program (PPP) has been instituted as a way to help local small businesses stay afloat amidst this unknown period during the pandemic. This piece will talk about PPP as a whole — as well as how one can go about applying for it.
PPP Specifics
The goal of the PPP is to essentially help businesses aptly pay monthly/hourly/weekly salaries to their employees. When looking at the totality of a payroll, this program will offer eight weeks’ worth of money to pay the employees accordingly. This money being offered is also able to be allocated to mortgage payments, interest rates, rent, utilities, and other miscellaneous costs associated with the business in question.
There are loans available dependent upon the situation of the interested party. Those that qualify for one-percent fixed interest rate loans include independent contractors, sole proprietors, smaller businesses, and any other type of individual falling under these categories.
Some businesses are eligible for second PPP loans. They’re distributed for usage similar to the initial PPP loan. However, a few stipulations include company size. A business must have less than 300 employees in order to qualify. Additionally, the business has to prove it used the first loan only for the intended purposes of the business infrastructure and nothing else.
Application Process
This process — which doesn’t cost a cent — can be completed online. Once filled out, normally the interested party will be contacted by a lender to speak about the prospective loan in great detail.
Where to Find Information
For those seeking further information on the PPP and exactly how it works, a simple search engine quest will provide plenty in the way of valuable details. This will unveil potential deadlines that businesses may need to make, as well as the financial implications on how this could impact one’s business in a positive light. There are even websites breaking down the top 10 PPP loans one can get based upon their business’s needs.