This year has been one of many setbacks for everybody, especially for those running small businesses due to Covid-19. The recent pandemic has brought in new ordinances that place limits on companies, including limiting the number of customers who enter their shops, offering carry out and delivery options, and even shutting the business early.
Luckily, help has come in many forms, with one of these forms being the CARES Act. This relief bill brought about a ton of beneficial measures to small businesses, including the Paycheck Protection Program, or PPP. That said, what does the PPP do. exactly? This business 101 guide was put together to help you understand what the Paycheck Protection Program is all about, and how your small business can benefit from the bill. Keep reading to learn more about the PPP small business benefits during the Coronavirus pandemic!
What Is PPP? Your Business 101 Guide on What to Know
The Coronavirus Aid, Relief, And Economic Security Act, also known as CARES Act, is a bill that consists of many different grant and loan opportunities designed to aid small businesses. The Paycheck Protection Program is one of the loans within the CARES Act that used federal funds to help small businesses.
The PPP originally started as a $350 billion program aimed at providing small businesses with up to eight weeks of cash-flow assistance through loans that were 100 percent federally backed by the Small Business Administration.
When the financial needs of companies increased and the CARES Act became more pronounced, the PPP program was expanded to further cover small businesses. Now, the Paycheck Protection Program and Health Care Enhancement Act have combined to add an additional $310 billion in funding.
Important Aspects of the Paycheck Protection Program
Although there are many aspects of the PPP, some of the more important ones include:
• All small businesses are eligible.
• You don't have to make payments until either your forgiveness application is processed or 10 months after your coverage period ends.
• There are no fees to apply.
• No collateral is needed to apply.
• The loan will cover your business expenses for 24 weeks.
• The loan can be forgiven and would essentially be turned into a non-taxable grant.
With these factors in mind, it's clear that your company would benefit greatly from the Paycheck Protection Program, especially in these uncertain times. Make sure you look into applying for this beneficial federal loan today.
Are you ready to get the benefits of the Paycheck Protection Program? You'll want to connect with a financial service professional to make sure you're the help that you need to file for the CARES Act correctly. Let's make sure your company continues to grow and thrive financially!
Stay In The Know
Now that the business 101 guide has helped you understand what the Paycheck Protection Program is, you can apply for it with confidence knowing it will help your business to succeed even in the midst of a pandemic. Check out our site for more tips and tricks that can help your company succeed. We're sure you're going to love what you find here on the Bootstrap Business Blog!
