It’s hard being a small business owner and keeping your business afloat in the best of times, but right now it’s easy to see that it’s even harder to do during a pandemic! Right now businesses around the country are facing unprecedented risks and uncertainty since we do not know how long this will last! Thankfully there are avenues that a small business owner can take to ensure their business’ survival, and the survival of your employees as well!
This past March, the US Federal Government approved a stimulus named the CARE Act, and in this package there is a program named the Paycheck Protection Program made to assist small businesses during this period of economic depression! These loans under the PPP are based upon eight weeks of your prior payroll and will loan 25% more than that amount! Your business must also have less than 500 employees, and has been in business since February 15th, 2020!
These loans are actually 100% forgivable, but each business must meet specific requirements in order to do so! Loan payments can be deferred up to a year with limited interest (4% per each loan), but as mentioned before you must obey the requirements—such as maintaining payroll for employees making less than $100K a year!
If you are confused about applying or if your business is eligible, you can take a look at the Federal Government’s Small Business Administration website at SBA.gov, where you will find instructions and resources on how to get the process started!