As Congress continues to craft and vote on new stimuli programs, the Paycheck Protection Program continues to be the foundation of help for small businesses. These loans are SBA 7a Loans. However, as long as the funds are used for keeping or rehiring employees, the loan is forgivable.
What is the PPP?
Here is how the SBA describes the PPP:
“The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
“You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.”
Get Help
If your business needs some cash to keep your employees on the payroll, then come talk to our experts at ASCEND. We can help you determine how best to use your PPP loan, make sure you meet the requirements to keep it forgivable and put a process in place to ensure that your business makes it through this financial crisis. Call ASCEND today at 888-297-3321.
Check out our COVID-19 Relief Series for more information.