5 Facts Your Business Should Know about the PPP
Is your company eligible for round #2 of the Paycheck Protection Program Loan through the Small Business Administration? As the deadline approaches, Waldo is here to help small businesses apply, whether or not you’re a current customer.
The coronavirus pandemic has proven to be a force to be reckoned with for businesses in the U.S. The massive layoffs and closures of beloved businesses left companies financially fragile. Thirty million small business jobs accounted for 54 percent of the most vulnerable jobs during the pandemic across America.
The Paycheck Protection Program (PPP Loan) launched on April 3, 2020, and as of February 28, 2021, this program had over 7 million loans approved and over 678 billion dollars allocated to those businesses. The opportunity to apply is coming to an end; whether you are a customer of Waldo State Bank, or not, we are happy to help you navigate the system and apply for the PPP loan.
What is the SBA Paycheck Protection Program Loan?
In response to the COVID-19 pandemic, the Small Business Association provided several options to help overcome the challenges in running and maintaining businesses. Specifically, the Paycheck Protection Program (PPP) supports businesses by helping them keep employees on payroll. For first-time applicants, the first draw of the PPP loans is still applicable. For businesses who already have applied for the first draw, you may be eligible for the second draw.
Waldo State Bank can be our PPP Lender?
While other lenders have decided to close their doors, we are helping to keep yours open. During the pandemic's peak time, we diligently helped our business community by providing the Small Business Paycheck Protection Program Loan through Waldo State Bank. We processed 72 loans helping to save approximately 398 jobs within our local area. The impact of the coronavirus pandemic still leaves many small businesses struggling so as a community bank, we want to assist you and your business with obtaining this second round of PPP loans.
What businesses are eligible?
Businesses that include sole proprietors, independent contractors, and self-employed persons are eligible. Non-profit organizations (including 501(c)(19) veterans' organizations or tribal business concern (sec.31(b)(2)(C) of the Small Business Act)) are also eligible.
No more than 500 employees are eligible for the first draw of the PPP loan. Businesses may apply for a second PPP loan if they have 300 or fewer employees and have previously received a First Draw PPP Loan.
All PPP loan recipients must have been in operation with employees on February 15, 2020. There are special rules for determining the employee limit, and individual franchisees may also qualify as separate businesses.
What can I use this loan for?
There are specifications for using this loan. However, the loan can be used for payroll costs, interest on mortgage obligation, rent, utilities, and individual covered supplier costs, worker protection expenditures, property damage costs, and operations expenditures.
Is there Loan Forgiveness?
The SBA will forgive loans based on specific criteria on employee retention status and the original loans' specific use. Specifications also differ depending on which draw off the PPP loan your business qualified.
As of March 4, 2021, the SBA has forgiven over $168.6 billion out of the total $521.2 billion total 2020 PPP volume dollar amount. There are still many applications under review for forgiveness as the SBA continues to navigate through the submissions.
For more information on the specifications for this program, visit the U.S. Small Business Administration.
The coronavirus pandemic's impact has left many small businesses struggling, and Waldo State Bank wants to answer the call by helping you obtain this PPP loan. We remain committed to processing 100% of the loans applied for and believe strongly in the "community" in community banking. We remain dedicated to the needs of our customers and community as they face uncertain economic times. Contact us today to see if your business qualifies!