- Discover the date of the loan application extended deadline.
- Find out more about the Paycheck Protection Program.
- Learn more about qualifying expenses under the PPP.
- Get the details about PPP loan forgiveness.
Did you miss the chance to apply for a Paycheck Protection Program (PPP) loan? Well, Congress extended the application period for a PPP loan through August 8, 2020. Although time is short, you still have time to apply. And, your Fiducial representative can help you through this process.
Unfamiliar with this program? Congress created the PPP as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). They authorized the use of the SBA’s small business lending program to provide forgivable loans of up to $10 million per qualifying business. The loans support small businesses in dealing with the economic hardships created by the coronavirus pandemic. Primarily, they help businesses continue paying employee salaries.
According to the SBA, small businesses are those with 500 or fewer employees, including those filing Schedule Cs (self-employed, sole proprietorships, or independent contractors), as well as non-profits and veterans’ organizations.
PPP loan forgiveness
The loans are forgivable to the extent that the funds must pay for certain specified expenses. These expenses include payroll, rent, lease payments, mortgage interest, and utilities. Business owners may pay these expenses during the 24-week period following the loan funding or by December 31, 2020, if earlier. To qualify for full forgiveness, a borrower must use the loan proceeds for eligible expenses and meet certain other criteria. The SBA may reduce forgiveness if an employer does not maintain their employee head count or reduces the pay per employee.
Approximately $130 billion remains in the fund, and the loans are doled out on a first-come, first-serve basis. Want more information or assistance, or to determine if your business qualifies for a PPP loan? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations.
For more small business COVID-19 resources, visit Fiducial’s Coronavirus Update Center to find information on SBA loans, tax updates, the Paycheck Protection Program, paid sick and family leave, and more.