Business Owners Must Act Now On COVID-19 Relief
(Tuesday, April 28, 2020, 9 p.m. EST) - The first tranche of $349 billion forgivable loans to businesses provided payroll assistance to more than 1.6 million small businesses from the U.S. Government before running out money. The second tranche of $310 billion in forgivable loans which is being distributed by lenders now and funding may also run out quickly, making it wise for business owners to act quickly.
The Paycheck Protection Program offers small businesses a forgivable loan to help retain employees during the social-distancing mandate spawned by the COVID-19 crisis. Under the program, more U.S. Small Business Administration loans in 14 days in April than in the previous 14 years, and 74% of them were for less than $150,000, according to the SBA.
PPP is a safety net for businesses with fewer than 500 employees -- mom and pop shops, restaurants, professional services and other small businesses that created 70% of the new jobs in the U.S. in the past decade -- the vast majority of which have 10 employees or less. Self-employed and contract employees also qualify for PPP.
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