paycheck protection program Tag

Streamlined Loan Forgiveness Application Now Available for PPP Borrowers

If you received a loan totaling $50,000 or less through the Paycheck Protection Program, the administrative burden associated with applying for forgiveness is now much lighter. The Small Business Administration recently issued Form 3508S, which is a far simpler loan forgiveness application, especially in comparison to the original 3508 form and even the 3508EZ form. For example, Form 3508S is a single page and requires very little paperwork when applying for PPP loan forgiveness. Small business owners who borrowed $50,000 or less will need to certify the following: Loan funds were used for eligible expenses; Payroll costs were at least...

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Converting Small PPP Loans To Grants – A Worthwhile Policy Proposal

Congress is eyeing further legislative modifications to the Paycheck Protection Program, one of the pillar programs of the $2.2 trillion CARES Act enacted in response to the Coronavirus pandemic. One of the policy proposals making its way through the chambers of Congress include automatically forgiving PPP loans that are less than $150,000. The idea of automatic forgiveness for relatively small PPP loans can be attributed to the Consumer Bankers Association and the Bank Policy Institute, two prominent lobbying groups that represent large financial institutions. Current Loan Forgiveness Requirements are Administrative Hassle It is possible for a small business owner to have some, or...

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PPP Loan Program Deadline Extended to August 8th

The President signed a bill into law extending the deadline to apply for a loan through the Paycheck Protection Program (PPP) to August 8th. The original deadline to apply for a PPP loan was June 30th. However, it was discovered that roughly $130 billion still remained in the loan program (Congress originally allocated $660 billion to the program). Both chambers of Congress approved the PPP loan program extension unanimously and the President signed it into law. The sponsors of the PPP declared they want to re-purpose the program to better serve the challenges businesses are facing now, according to NPR.org. "As the...

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Overview of the Modifications Made to the Paycheck Protection Program

Congress took a big step in modifying the problematic Paycheck Protection Program (commonly referred to as the "PPP Program"). This program was created as part of the multi-trillion dollar aid package to help Americans and small businesses in the midst of the Coronavirus pandemic.  However, the lack of clear guidance on how to administer the PPP Program by the Treasury Department and Small Business Administration led to a chaotic roll out and a number of large businesses gobbling up funds meant for smaller businesses hit hardest by the economic shut down brought on by COVID-19. The chaotic roll out was...

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Important Info for Any Business Owner Who Received a PPP Loan

If you are a business owner who successfully applied for, and received, a loan through the Paycheck Protection Program, it is critically important to stay on top of those loan funds to ensure you comply with the program and remain eligible for loan forgiveness. Unfortunately, compliance can be extremely challenging since it seems like the rules governing the PPP program are constantly changing. Tip No. 1 - You Have 8 Weeks to Spend the PPP Funds If you received a PPP loan, it is important to understand that you cannot simply set that money aside. You need to utilize those funds for...

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