Nationwide (BlackNews.com) — In March 2020, the U.S. government announced that trillions of dollars would be made available to organizations, small businesses, and individuals in an effort to stimulate the economy. As of Monday, April 6, many small businesses are already starting to see the reality of that initiative.
Randy Hughes, founder and CEO of Counting Pennies, LLC, says that several of his small business clients are already seeing loan money come in from the Paycheck Protection Program (PPP). The PPP is part of the third phase of a 3 phase progress the government wrote into law in March. Under the program, business that have employees are encouraged to keep those employees on payroll and hire back any that they had to layoff.
“The Payment Protection Program is a wonderful opportunity for small businesses to keep their doors open, continue serving their communities, while at the same time retaining their employees,” Hughes says.
The program is a loan that is based on 2.5 times the average monthly payroll of the business. Once received, the funds can be used to cover payroll for employees, as well as other expenses, such as utilities, mortgage interest, and lease payments. As a further incentive to use the funds to help employees, the program states that if at least 75% of the loan proceeds are used for payroll, then forgiveness of the loan can be requested, and if granted, the loan will be converted into a tax-free grant that does not need to be repaid.
“These are unprecedented times,” says Hughes. “The loan is free of much of the red tape associated with traditional loans, and the funds are being provided quickly, within 3 business days in many cases. If ever there was a time to be proactive in applying for assistance, this is that time.”
For more information on the Payment Protection Program and how to apply, visit the SBA website.
To learn how Randy Hughes and Counting Pennies can help you potentially get approved faster and also help with other accounting and tax management services, visit www.cpennies.com or call them at (800) 234-1449.