Updates to PPP/SBA Loans + June Finance Outlook
The Silver Lining to The Quarantine
May 19, 2020
The Fall, The Scare, The Hospital, The Support
July 22, 2020
It’s been quite a busy couple of months for me and I’ve really enjoyed being able to help so many business owners through this unprecedented time. There is still a lot of work to do and I wanted to share some updates this month, as well as some reminders as you continue monitoring your finances.
There is still money available for the PPP loans, but get your application in quickly. June 30th will be the last day to submit. If you haven’t heard, yet another new law was passed changing some of the guidelines relating to the PPP loan.
Notable changes include:
- 24 weeks to use the money (or 8 weeks)
- The payroll costs percentage of the spending decreased from 75% to 60%
- The deadline of June 30th to have your employees back to pre-layoff full-time equivalency has been extended to 12-31-2020
If you receive an email from the SBA that looks like it could be fraudulent, it actually might not be! I myself questioned it, at first.
Do your research, but there is a new email circulating for people who applied for the EIDL loan with information on another loan at 3.75% interest payable over 30 years.
This loan can only be used for business-related expenses and many are seeing benefits of using this loan for items like PPE, sneeze shields, etc. A capital investment into the company is acceptable so even something like hiring a new team member or getting your website redone could be covered under this loan.
The funds seem to range from around 30K to 180K and you receive the money in a lump sum, once the documents are e-signed. There is no prepayment penalty either, so as soon as you want to pay it off, you can.
Remember that July 15th is the new tax deadline for filing 2019 income and state, as well as estimated payments previously due in April and June. Nonprofits have until August 15th to file.
This is the time to look at your profit and loss statement and formulate a plan for the rest of 2020. Things are starting to get back to “the next normal,” but will always look different. As we sit in the yellow phase here, more and more businesses are starting up operations and it’s encouraging to see the support of the community.
If you need ANYTHING, reach out or connect with me on one of my upcoming breakfast series meetings, which are still being done virtually.
