Small Business Owners Can Apply for a Federal Loan/Grant to Cover 8-Weeks of Payroll (For Their Entire Business) - Granite Grok

Small Business Owners Can Apply for a Federal Loan/Grant to Cover 8-Weeks of Payroll (For Their Entire Business)

Money2

The Federal Government loves to give away our money, but in this instance, it is to save small business payrolls for operations that were forced to close. I’m still not down with either side of that abuse, but we’re here, so this is how you, small or medium-sized NH business owner, can take advantage.

Related: NH Approved for COVID-19 Economic Injury Disaster Loans

First,

Small businesses that employ 500 employees or fewer are eligible for a 100 percent federally guaranteed loan through the Small Business Administration’s (SBA) Paycheck Protection Program. Businesses can borrow up to 2.5 times their average monthly payroll expenses for the year 2019 or $10 million. If they keep all of their employees, the entirety of the loan will be forgiven, effectively making the loans into grants.

I’m not aware of any stipulations like “if you take this money 17.2 % of employees must be transgender.” I think these are relatively clean small business loans. I expect you’ll be savvy enough to identify any other stipulations so here is how you apply.

In addition to small businesses with fewer than 500 employees, other businesses eligible for the program include tribal businesses, 501(c)(3) veteran organizations, 501(c)(3) religious organizations, certain nonprofits, independently-owned franchises with under 500 employees, and certain classified restaurants, hotels, or businesses with locations that have 500 employees or fewer. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are also eligible for the program.

The primary goal of these funds is to support small business payrolls so you can keep pay employees during a forced shutdown by the government. Those payments are critical for some, not just because they need the money but because their business-linked health benefits can continue to be paid and covered if they have them.

You have to keep and pay (with the loan) your entire staff for the eight weeks the loan covers. At that point, the money becomes a grant, and you will not be required to pay it back.

Apply for the Paycheck Protection Program at any bank, credit union, or lender that participates in SBA’s lending programs. Use SBA’s online Lender Match tool, or call your bank, to find a local lender that is SBA approved. …

The deadline to apply for the Paycheck Protection Program is June 30, 2020. Find out more about the SBA’s program here, or apply for an SBA economic disaster loan here.

Laid-off employees can be rehired and become part of the program. Follow the links for more details.

| The Federalist

>