Tips to Help with the Next Round of Paycheck Protection Program Funding
The COVID-19 pandemic has upended lives across the U.S., including our local communities as officials work to curb its spread. Though states have put restrictions in place to slow infections, all types of businesses have felt the financial squeeze.
The CARES Act previously provided some relief for businesses in 2020, dispersing more than $525 billion through the Paycheck Protection Program (PPP). Keeping the right number of employees and avoiding big payouts were important factors that affected a business’s qualification for forgiveness. But for various reasons, not every business was able to take advantage of this program.
It is no surprise that PPP loans can be confusing, especially for business owners dealing with the stress of just of trying to make ends meet for their business and their employees. A second round of loans – a stimulus relief bill for the COVID-19 pandemic is now available through March 31, 2021. Here are some tips to keep in mind to assist you with this application process so you will not miss out this time around:
Know Who to Contact.
If you have not done so, call a bank lender – an approved SBA loan provider, a community lender – supports businesses in underserved areas, or a fintech lender – provides the latest technologies to streamline the lending process, right away. If you successfully filed a loan the first time or this is your first application, your lender will ensure that you get all the relief you are entitled to. Also, having a good CPA on your side is an invaluable aid for business owners during these difficult times. Members of The Chamber Alliance can offer valuable assistance.
Get Your Documents in Order.
The more prepared you are, the quicker you will be able to get your loan processed. Here are examples of what you will need:
2019 and 2020 profit and loss statements
2019 and 2020 tax returns (if applicable)
A copy of all W-2 forms
A list of payments to partners who own 20% or more of the business, up to $100,000
Stay Up to Date with the Changes.
It is essential that each business take this opportunity to fill out the application form to see if your organization qualifies for the PPP loan. Though there were a few snags and revisions to the program, the Small Business Administration (SBA) has streamlined the application process and reduced the turnaround time by putting out notices and providing questions and answers to clear up issues along the way. Help is available through www.sba.gov or www.treasury.gov or contact The Chamber Alliance office at 513-777-3600 for assistance.
Thank you for being a valued member of the West Chester - Liberty Chamber Alliance. Together we grow your business. Please be safe.