One of the more popular programs of the recent CARES Act was the Paycheck Protection Program (PPP). Under the PPP, impacted businesses can apply for loans to cover payroll, rent, utilities, etc. If the proceeds are used to retain and pay employees, the loan can be forgiven. Up to 2.5 months (10 weeks) of payroll can included in the loans.
The initial $360 billion in funding allocated to the PPP has already been exhausted as businesses jumped to get these loans. This week, Congress has added another $320 billion in funding for the PPP, so more businesses can get relief. The president is expected to sign the bill on Friday (4/24).
If you own a business here are the main things you need to know about getting a PPP loan:
- Act quickly. These funds will go in a matter of days/weeks (not months).
- You can only get a PPP loan through an approved SBA lender. Most big banks are offering these but you may have more success in working with a smaller community bank. A lot of banks are only offering these to existing customers. So, start with your current bank.
- Follow the specific guidelines to ensure your PPP loan is forgiven. See this article on Inc.com for an overview of the forgiveness guidelines.