Everyone is in a panic as jobs are shut down and people are ordered to remain in their homes. Even Wall Street is seeing a huge dip in financial income and trading activity due to the coronavirus. But at least the federal government is being proactive when it comes to protecting small businesses and employees.
The newest system of relief comes in the form of the Paycheck Protection Program, also known as the PPP loan. But what exactly is this loan, who can qualify for it, and how will it help?
About PPP Loans
Companies and employees are suffering some of the biggest losses right now due to the global pandemic. One small thing that can help these people is the forgivable paycheck protection loan. This is being distributed by the Small Business Association in amounts up to $10 million to help businesses cover payroll expenses and other overhead.
The PPP loan is a 7(a) loan that is included as part of the current CARES act. About $349 billion of the allotted CARES act funds are going directly to this loan. Creators of this loan have promised fewer restrictions, easier eligibility, and a simple sign-up process.
Who Can Qualify For A PPP Loan?
If your company or small business relies on Wall Street for the majority of its income, you may be able to look to this loan for some short-term relief. Since the restrictions on eligibility are so light, it is likely that you can take advantage of this forgivable loan. While you’re learning all of this, you should also visit https://www.wallstreetmastermindreview.com/ website if you literally want to live in the center of all the action. By getting a job on wall street.
You can qualify for a PPP loan if you are:
- A sole proprietor
- An S Corporation
- A C Corporation
- An LLC
- An independent contractor
- A non-profit organization
- A faith-based organization
- A tribal group
- A veteran group
There are also certain businesses in the hospitality industry that can qualify if they have less than 500 employees working for them.
What are the Terms of the Loan?
There are great terms set up for this loan. As a borrower, you can expect to see up to 2.5x the average costs that you would incur for payroll on a regular basis. If your average monthly payroll totaled $5,000, for example, you could qualify for up to $15,000 per month.
PPP loans will be forgiven if at least 75% of the loan is used for payroll, rent, mortgage, and utility bills. The maximum amount of money you can get from the PPP loan is $10 million.
How to Apply for This Loan
You can apply for a PPP loan through the SBA.gov website. There are also resources available to help you find a lender or a financial advisor so you can properly apply for your PPP benefits.
Most people are cautious to apply for this loan with the fear that there will be even more debts to repay once the coronavirus emergency is over; however, the terms of loan forgiveness are so easy that it is very likely you will never have to pay it back at all.