Info on the SBA Paycheck Protection Program (PPP)
April 10, 2020
What’s up with the SBA Paycheck Protection Program (PPP)?
This program was approved by Congress in March with the purpose of delivering much needed economic aid to our Small Business Owners. One thing is for sure, the government was not expecting such a massive response. Financial Institutions had to scramble to get their systems set up to handle requests and the SBA is still working on streamlining their process.
What can you do to help the process along and ensure you will be in line for the assistance? Gather all necessary documents for your entity type. Ask your financial institution what they require processing your request.
Ensure when you calculate the amount needed you are only including payroll. The stimulus package allows you to use a portion of what you receive on other costs (up to 25%) but determines the amount you get based on payroll.
Once you have submitted your application, the Financial Institution must submit it to the SBA for approval. This process can take some time due to the overwhelming response. Have a little patience during this time because the SBA system has been known to crash and not let anyone in.
Once your loan has been approved and you receive your funds, keep track of your expenditures. This loan has the potential to be forgiven if you use at least 75% of it toward payroll costs. You must be able to this so keep your receipts and payroll logs up to date. Otherwise you will be on the hook to pay it back.
SBA FAQ <--- Click here for frequently asked questions
Director of Business Development
Fortera Credit Union