Ensuring that your business has the means and backing necessary to pay your employees and keep things afloat during challenging times can be a tricky process to navigate. It might require you to take out additional loans and make cuts to certain areas of your operations. Among the options available to you is that of the Payment Protection Program.
The Payment Protection Program, also known as the Paycheck Protection Program or simply PPP, is a government-backed program that is designed to help businesses continue to pay their workers during times when businesses have been told to halt all operations for safety reasons. Implemented with the CARES act, this type of loan is meant to help businesses weather the storm created by the coronavirus pandemic.
If you are looking for a way to help you bring your business through these difficult times, a PPP loan might be the right option for you. Here is some more information to help you understand the nature of the loan and what it will mean for your business in a post-coronavirus climate.
The application for a PPP loan can be a bit complex, and not every business out there will be able to qualify. It can be beneficial to have help in completing your application, so it is worth consulting an expert like those at biz2credit so that you can have everything done correctly and in such a way as to maximize your benefits.
The PPP is mainly designed to help smaller businesses out during these tough times. To be eligible, your business must employ no more than 500 workers and be able to prove that business has been negatively impacted by the COVID-19 pandemic. Companies that fall within these parameters generally include restaurants, tribal businesses, independently owned franchises, and self-employed workers.
Eligible businesses have been granted a period within which to submit applications for a PPP loan. To have your application considered, make sure to have it submitted by no later than August 8th, 2020.
The parameters of the PPP also provide for the possibility of loan forgiveness. This means that under certain circumstances, you might have part of or the entirety of the loan you receive under the PPP forgiven. These criteria mainly pertain to the retention or rehiring of employees to your company.
To qualify for loan forgiveness, you will need to maintain all of your full-time staff. If you have already had to make cuts to your team for the time being, you will need to rehire them within 24 hours of receiving your loan if you want to benefit from the loan forgiveness.
Generally speaking, the forgiveness option for your payment protection program loan is meant to encourage you and other businesses to keep people employed during these unprecedented times. Not all loans will fall within the criteria. Still, the general idea is that businesses who strive to keep their staff employed throughout the pandemic will be rewarded for their efforts.