In response to the COVID-19 pandemic, the government passed the Paycheck Protection Program (PPP). This was done in an effort to assist individuals, families, and businesses throughout the country as they are impacted by the economic crisis caused by the pandemic. PPP allowed businesses to receive direct government subsidies for payroll, rent, and other costs. These came in the form of loans that could be forgiven if the businesses used at least 60% of it for payroll.
As the United States is now months into the pandemic, the need for financing is still necessary. While the original deadline to apply for PPP was last week, $130 billion out of the $660 billion allocated for the funds still remains. Due to this, both houses of Congress approved an extension and President Trump signed legislation to push the deadline for small businesses to apply until August 8.
So far, the program has given out roughly $520 billion in loans to almost 5 million small businesses in the country. They were meant to cover about two and a half months of general business expenses. Now, those who sponsor the program say they want it to be repurposed so that it can help small businesses with the challenges they are facing now, different from that of the start of the pandemic. Florida Senator Marco Rubio stated that “longer-term support is necessary” and he wants to see additional support for “our smallest businesses, especially in our underserved communities.”
How do I Apply for a PPP Loan?
In order to apply for a PPP loan for your small business, it is important to be aware of the proper steps that must be taken. This includes the following:
- Access your PPP application
- Add or confirm existing business information. This includes the business address, type, tax ID, the loan amount requested, and employee count.
- Add new requirements for business information
- Enter or confirm ownership. The ownership percentage must be greater than 0.
- Enter or confirm additional owner information. You must add information for anyone with at least a 20% share in the business.
- Upload or confirm documents. This includes a driver’s license and acceptable payroll documents.
- Check your email for additional instructions from your lender.
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