Are you struggling to keep up with payroll because of issues related to the Coronavirus?
Do you need financial assistance to avoid having to let go of members of your team?
Answering “yes” to either of these questions or other financial problems that have arisen since COVID-19 came to the United States could qualify your business for a Paycheck Protection Program loan. Learn more about this great opportunity and how you can use it to your company’s benefit!
According to the U.S. Small Business Association (SBA), the Paycheck Protection Program is a loan made possible by the government stimulus as part of the CARES Act. The PPP loan was created to help companies maintain cashflow to their employees during the Coronavirus (COVID-19) crisis.
More specifically it was made to motivate small business owners to keep employees on their payroll throughout the duration of the pandemic.
The numbers involved with the PPP funds are fairly strange but they’re also easy to understand and calculate. Before getting started, you’ll need to ensure your 2019 taxes are completed to find your average monthly payroll expense.
To determine what you qualify for with a Paycheck Protection Program loan, you’ll need to complete the following calculation:
Here is a basic example of how to calculate your PPP loan:
The simple answer is that it depends.
As long as 100% of the loan is used for the purposes of payroll, rent, mortgage interest, or utilities, the PPP loan can be fully forgivable. This essentially makes it more like a grant than a loan when used properly. The loan forgiveness application must be completed to determine whether you qualify.
But even if there are other expenses you need assistance with during this time, many business owners are still taking advantage of this loan due to its incredible interest rates as low as 1%. And you can feel confident that you’ll be protected from any potential backlash as none of your personal information is required. It will all be applied to your business.
If your business needs financial support with payroll, now is the time to take advantage of this great program. You can apply through your local bank or federally insured credit union as well as any other official SBA 7a lender.
You’ll need to complete the application and have it prepared for the institution you submit the loan through.
Some small business owners are being told they’re not eligible or that funds are no longer available. If you’re struggling to find a bank that will provide you with a PPP loan, reach out to Top Notch Cinema at (332) 255-2456 for a referral! Although we’re not affiliated with any banks, we have resources that can offer you a better opportunity for approval.
