Well, it has certainly been quite the last couple of weeks with the rollout of the EIDL and PPP loan programs. Hopefully, your business has had the opportunity to apply for one or both of these options, and while funding has not yet been disbursed, I know that we are all hopeful that it will be in the near future. We wanted to to publish this blog post (with the help of our partners at Gusto) to provide a general overview of the PPP program, with the hope that it may better educate business owners on the program itself, as well as what to expect with it. For any who have already applied, it has become abundantly clear that if your Books were/are not in order, the application process is much tougher and more time-consuming. If SPB can assist with Bookkeeping, or general guidance on the various loan options, don’t hesitate to reach out, and please remeber to consult with your CPAs!
Review rules and eligibility.
Almost all small businesses qualify. But your loan will only be forgiven in eight weeks if you make sure:
- At least 75% covers payroll costs (including benefits)
- No more than 25% covers existing rent, utilities, and mortgage interest
- Headcount or wages haven’t been reduced as a result of COVID-19
Gather your payroll information.
You’ll need documentation that proves your average monthly payroll.
Gusto customers can fast-track this process. Sign in to calculate your total loan and download your payroll report.
Apply through a lender.
The government requires you to apply for this loan through an approved lender. Contact your bank or other SBA approved lenders.