The Paycheck Protection Program (PPP) Loan has provided aid to several small businesses that have faced financial challenges due to the COVID-19 pandemic. However, Tuesday, June 30, 2020, is the last day to apply for a PPP loan. To consider is your business might benefit from applying for a PPP Loan before the deadline, please review the following points:
- PPP provides a loan to qualifying businesses, to encourage employee retention during COVID-19, by providing financial assistance with the payment of certain expenses.
Eligibility: 500 or fewer employees
Amount: 2.5x the average monthly payroll expense
Allowable uses: (1) payroll expense (2) cost related to the continuation of group health care (3) employees' salaries (4) rent (5) utilities
Interest Rate: fixed 1%
- Loan Forgiveness: PPP loans can be forgiven in an amount equal to eligible costs made during 8-weeks beginning on the date of the loan, with documentation.