PPP Loan Period Extended
The PPP loan application period has been extended. Small businesses impacted by the pandemic can apply for a forgivable loan until August 8, 2020.
SBA Loans for Small Businesses
Despite the best efforts of federal and state governments, the COVID-19 pandemic is far from over. As the U.S. economy continues to react to these unprecedented events, Congress is taking steps to minimize the damage that small businesses are experiencing. The result is a number of changes to the Paycheck Protection Program, or “PPP”, a new type of loan offered through the SBA. Now, the window of time to apply for the forgivable loan is extended.
The original opportunity to apply for a PPP loan closed on June 30, 2020. At that time, there was still $130 billion of the $670 billion which was set aside for PPP loans. However, the Senate and House have unanimously approved a bill extending the program until August 8th.
A forgivable loan program created by the CARES Act, the PPP was intended to soften the economic damage small businesses experienced due to the pandemic. Congress expanded the program once already, when it doubled the funding to meet the need for assistance. On June 22, the SBA released guidance clarifying what would be required for forgiveness. At the same time, they raised the limits on the amount of funding that could be used for non payroll costs without losing forgiveness.
There is potential for a second round of PPP funding to the businesses with the most need, but that remains to be seen. Treasury Secretary Steven Mnuchin would like to develop a more precise way to ensure that the funds are distributed to the industries that are struggling the most. Hotels and restaurants are being hit especially hard by the stay-at-home orders in many states.
Many sole proprietors and self-employed business owners are surprised to learn that they many qualify for a forgivable loan. ECOM CPA has helped a number of e-commerce business owners apply and receive PPP loans.
When evaluating eligibility, there are two main criteria we consider:
- if self employed, you must have documented positive net income in 2019; or
- if a business owner, you must have employees.
If you meet one of the above criteria, you are probably eligible for a PPP loan. The exact amount is different for each business, and is based on net business income.
How to Apply
If you’re interested in pursuing a forgivable PPP loan, we can help!
The first step is to fill out our PPP Intake Form.
If you are eligible for a PPP loan, we’ll contact you to assist with your application and loan processing, as well as how the funds should be used to ensure forgiveness.
Have questions? Email us at [email protected]!