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.
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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
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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.
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