The CARES Act and You!
What it means for your small business.
Businesses are doing everything they can to maintain a sense of normalcy during the COVID-19 outbreak. However, some new programs have been put in place that are designed to help small businesses survive in uncertain times. The program we are going to focus on is the "Paycheck Protection Program" in the CARES Act. The first thing we are going to talk about is a few fast facts about the Paycheck Protection Program.
- In the program, a small business is defined as under 500 employees.
- It is advised that before applying for the loan you speak with your legal counsel or your accountant.
- The PPP process is delivered through the bank, which means that you must go to your local bank to apply.
- You must know your payroll as the program offers up to $10 million or 2.5x your payroll, whichever is less.
- These loans have a possibility of being forgiven if you meet a few criteria, including if the loans are used for payroll and you maintain 75% of your staffing and payroll.
- Loans that are not forgiven must be paid back within 2 years and will start at a 0.5% interest rate.
- These funds will be highly sought after, so apply soon!
One important thing to keep in mind is that while there are chances for the loan to become a grant and be forgiven, that is contingent on meeting the criteria as outlined in the documentation that accompanies the loan. We encourage you to look through some of the links at the bottom of this article to gain more knowledge on the Paycheck Protection Program. If our team at Flypaper can be of any assistance, please don't hesitate to reach out to us.
Paycheck Protection Program FAQs
How to Submit Your SBA PPP Loan Application and Calculate the Loan Amount
Getting Started On Your PPP Loan
If you are looking for a wider reaching article on the CARES Act and other programs that have been put in place, we recommend this informative article from our friends over at HubSpot.
How Small Businesses Can Take Advantage of the U.S. Stimulus Package
