If you are a small business and you haven’t applied for government PPP loans, the deadline is August 8, so now’s the time!
PPP loans, or Paycheck Protection Program loans, were created to help small businesses keep workers employed by covering a business’s payroll expenses for eight weeks after the funds are dispersed. Then, if all employee retention criteria are met, the Small Business Administration (SBA) will forgive the loans. It’s a win-win for employers who want to keep their workers on payroll and for employees who want to continue to work.
We aren’t experts on the application process, but with help from our bank, we felt the process was fairly straightforward. Our biggest recommendation is to utilize your relationship with your bank. They are the experts here. They can guide you through the application process and help ensure all your loan calculations are accurate. We learned through our experience that it is vital to be extremely accurate when determining your loan amount. There are many online tools that will help you, along with your local lender, or bank. Aside from just payroll costs, the loan also includes costs associated with employee healthcare benefits, mortgages, rent, utilities, and payroll tax. All of those things will be part of your loan amount calculation.
Like we said, we aren’t experts on the program, but we hope the knowledge we gained in our experience helps you understand how you can utilize the funds as well.