As a small business owner, it’s a good idea to make yourself aware of your options for financial assistance during the COVID-19 crisis. One of the most important options available to you is the Paycheck Protection Program (PPP) loan.
What is the PPC Loan?
This program is designed to help business owners continue to pay their employees during the economic downturn. This loan’s terms are so good that you may want to check out this program even if you are not sure whether you want to take out a loan. It covers up to $100,000 annually for each employee on your payroll. The loan will also be forgiven as long as you use it to cover your payroll as well as other critical business expenses, including utilities, mortgage payments, and rent.
Applying for the PPP Loan
In order to benefit from this program, however, you do have to know how to properly apply for it! In this video, I’ll provide you with a step-by-step guide to applying for the PPP loan.
First, you need to be sure that you are eligible for the PPP loan. To apply, you must meet several criteria.
- You must have a business or nonprofit with fewer than 500 employees who live in the United States.
- You must have been in operation as of February 15, 2020.
- You must operate as a sole proprietor, an independent contractor, or a self-employed individual.
If you are planning to apply for this program, then it’s a good idea to do it as soon as possible! If you have employees, then you can apply right away. However, if you do not have employees, then you will need to wait until April 10. While you are waiting, you should start putting together all of the information you will need for your application. For example, you’ll need to figure out everything that you should include in your payroll costs, such as tips, health insurance premiums, and retirement contributions.
To apply for the loan, you will first need to get in touch with your business banker. If you don’t have an existing relationship with a banker, then I recommend that you use the Business Development Finance Corporation.
When you need help sorting out your business’ finances, it’s time to call The Royce CPA Firm. We offer sound financial services for individuals and small businesses in the Tucson area, including help with tax preparation. If you’d like to learn more, then get in touch with us today for an appointment!