The Paycheck Protection Program: What You Need To Know
In recent weeks there has been a steady media buzz surrounding the news of the $1,200 stimulus checks going to every American in the wake of the Coronavirus outbreak. However, what’s not really being mentioned are the BILLIONS of dollars being set aside for small businesses right now. Strategic Growth Advisors, LLC is here to help keep you educated and informed.
What is it?
Title 1 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act is the Keeping American Workers Paid and Employed Act. This provides a safety net for both employers and employees who have been negatively affected by the recent coronavirus outbreak.
Application Process & Eligibility
Any business with under 500 employees can apply. Sole proprietors, independent contractors, and self-employed individuals are all eligible for the Paycheck Protection Program. This one-time business loan can be applied for any time between now and June 30th, 2020.
Other Loan Details
Businesses can borrow up to 2.5 times their average monthly payroll costs, up to a maximum of $10 million. This amount is designed to cover eight weeks of payroll expenses, plus a little extra. This money is eligible to put towards debt obligations, i.e., mortgage, rent, leases, utilities, etc.
If you keep all of your employees through the end of June, then the entire loan will be forgiven. If your business still has to lay off employees, the loan forgiveness will be reduced by the percentage decrease of your employees.
The Paycheck Protection Program is a lifeline for many struggling businesses that have had to close their doors recently in the wake of the mandatory social distancing guidelines. These protocols enacted by local and federal governments to help curb the spread of the coronavirus are essential to maintaining public health but have also negatively affected the economy in the process.
Depending on the events of the next few months, this economic relief plan for small businesses may be extended or expanded depending on how this first round goes. Until then, there will inevitably be a greater emphasis towards online business. Contact StratGrow today for any of your digital marketing needs. We specialize in SEO, branding, website design, content, social media management, and much more.