Update: The PPP application deadline has been extended through August 8th!
Originally posted on 6/25:
The federal government’s PPP loan was designed to allow contractors, self-employed individuals, and small businesses under 501 employees to get emergency funding to keep people on payroll. You can receive a loan up to 2.5 times the average monthly pay of yourself and your employees, capped at $20,833 in funding per employee. If you spend the loan on qualified expenses it can be forgiven.
You’ll need to get an SBA loan approval number by 6/30. You can still apply for a PPP loan through Kabbage here until 6/28. You can apply through multiple banks to see which can get it approved in time.
Under the current rules you’ll have 24 weeks to use the funds on rent, utilities, and mortgage payments in addition to paying salaries. You’ll need to use at least 60% of the funding on payroll.
Based on updated guidance, you can claim forgiveness on payroll for an owner/shareholder up to $20,833 (100,000/12×2.5) and for an employee up to $46,154 (100,000/52×24). You are also able to apply for early loan forgiveness.
Have you been approved for a PPP loan?