The federal government’s Paycheck Protection Program offering $350 billion in loans to small businesses has attracted widespread interest, but it’s also raised plenty of questions from both borrowers and lenders.
But banks have said they need more clarity on the rules for the program, and business owners told MarketWatch they’re confused by the loan conditions. It’s worth keeping in mind that sole proprietors, independent contractors and self-employed workers who may be part of the “gig economy” are also eligible, according to Julio Gonzalez, CEO of Engineered Tax Services.To apply for the loan money, applicants have to show they were in business before Feb. 15.
FMA also has a sample script that will help business owners know what questions to ask potential lenders. Questions include how the lender would like them to calculate payroll and staff head count.It’s important to bear in mind that the money coming out of the Paycheck Protection Program is separate and apart from the Economic Injury Disaster Loan program.
What are the terms? In order for the federal government to forgive a Paycheck Protection Program loan, recipients can only use it over the “covered period” of eight weeks for payroll and the non-payroll expenses of mortgage interest, rent and utilities, the Treasury Department said. The potentially forgiven amount decreases if the full-time employee head count decreases during the covered period, the Treasury Department said. The forgiven amount can also shrink if the loan recipient cuts salary and wages by more than 25% for any worker who made under $100,000 last year.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
After a frenzied rush to file for small business loans, entrepreneurs nervously wait on bank approvalsStrong demand for the small business relief program is “a really good sign for what the economy might look like 2-3 months from now,” Labor Sec. Eugene Scalia says. Joe come on.🙄 Is China back to normal? Had their stock market oversold like ours? China is also giving investors hope. How many are going to fold and never come bacK?
Source: CNBC - 🏆 12. / 72 Read more »
Big Banks Favor Certain Customers in $350 Billion Small-Business Loan ProgramThe big banks’ decision to focus on existing customers could hurt smaller and minority-owned businesses that are less likely to have accounts with them, as well as businesses in rural areas where they have fewer branches 'GET WELL SOON' Boris BorisJohnson was admitted to the hospital due to coronavirus I am shocked to hear billionaire big banks are going to screw over little people after receiving hundreds of billions of dollars in taxpayer money. Shocked, I tell you. We just need to pull ourselves up by our bootstraps, or whatever. Why don't these banks ever bail us out? This a method to hurt the small minority owned business I have a Contracting firm. I know do a story on me A New World Contracting Co.
Source: WSJ - 🏆 98. / 63 Read more »
Treasury preparing to seek more than $200 billion to replenish small business coronavirus programThe Treasury Department is asking for more than $250 billion to replenish a new small business loan program that's being quickly spent down. No more BAILOUT until we don't have an Account of how the $350 billion was spent. Did Ivanka suck up all the initial funds? China is responsible for a biological warfare corona
Source: washingtonpost - 🏆 95. / 72 Read more »
McConnell Says Small-Business Loan Program Needs More FundingSenate Majority Leader Mitch McConnell (R., Ky.) said he would aim to approve more funding this week for a small-business loan program that Congress created last month to help firms hit by the coronavirus pandemic. But socialism or something Dotard's Easter Sunday Exorcism On PPV! MAGAVirus Watch preview 👇 No surprise here. Probably need 2x at the least PPPloans
Source: WSJ - 🏆 98. / 63 Read more »
Bankers plead with Trump: Fix small business rescue planFrustrated bankers today directly appealed to Trump to fix problems with a Small Business Administration system that is holding them back from issuing $350 billion in government-backed loans designed to avert mass layoffs during the coronavirus pandemic The screwover of small businesses by Congress was clearly intentional.
Source: politico - 🏆 381. / 59 Read more »