Starting today, Wednesday, Feb 24, small businesses with fewer than 20 employees can apply for forgivable loans under the Paycheck Protection Program (PPP). The application window is limited and will only be open for a total of two weeks. One billion dollars will be set aside primarily for businesses owned by minorities and women. This is part of the new formula used to calculate who receives the forgivable loans.
The first wave of PPP loans began in April of last year, during the height of the coronavirus as part of the CARES Act. It ran for roughly five months, distributing 5.2 million loans worth approximately $525 billion.
Good News For Gig Workers
The Biden administration’s new calculation on how the Small Business Administration (PPP) will grant these forgivable loans is good news for the smallest firms and sole proprietors. It will likely lead to larger loan amounts for non-employer firms, including sole proprietors and independent contractors.
SBA Loans: Simplified
Applying for these loans can be a daunting task for any small business owner. However, updates to our payroll platform make the process much simpler and stress-free. Back in April, we initiated a platform update to make it easier for our payroll clients to obtain a Small Business Association (SBA) loan. Clients who qualify and apply for the loan will require a special payroll report now available through the Fingercheck platform. That helps streamline the SBA loan application process. To learn more click here.
For more information on the forgivable loans visit SBA.gov.