UPDATE March 31, 2020: The U.S. Department of the Treasury released the official Paycheck Protection Program (PPP) Loan Application. It can be downloaded here from the Treasury website.
On Friday, President Trump signed the CARES Act, the largest stimulus package in the history of the U.S. All entrepreneurs and small business leaders should quickly determine how this package will impact their organization. At first glance, it seems like every small business should take advantage of the opportunity. Here are three resources to help you understand the CARES Act.
1. Reimbursement for Eight Weeks of Payroll Costs
The benefit that is most interesting to small businesses is the Paycheck Protection Program (PPP) – it provides a forgivable loan for eight weeks of payroll, rent, mortgage interest, and utility payments. The keyword is “forgivable.” It’s not perfect, but it’s pretty good. Here’s my article, “First Look at the Paycheck Protection Program (PPP) in the CARES Stimulus Bill.” I am updating the post as new information comes available.
2. The Devil is in the Details
Forbes contributor, Peter J. Reilly, posted the article, “Paycheck Protection Program – Devilish Details – Some Uncertainty,” discussing the implications of the “payroll costs” definition in the Paycheck Protection Program (PPP) and some of the nuances around being a sole-proprietor or an S Corporation. I expect a lot more clarity on these issues in the coming weeks. (H/T @davegalbenski)
3. Where Does a Business Start?
There are mixed messages about when to expect SBA-Certified banks will start taking applications. Some claim to have already completed forms, and others say that banks won’t be ready until mid-April. What you can do is prepare your documentation. The Paycheck Protection Program (PPP) is a variant of the SBA 7(a) Loan Program. Until a specific PPP Loan Checklist is available, use the “7(a) Loan Application Checklist” on the SBA website as a starting point.
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Rob Simons is a coach, facilitator, and storyteller – a unique fusion of skills that makes him uniquely equipped to coach entrepreneurs and business leaders to scale organizations. Using the Rockefeller Habits as his foundation, Rob has successfully trained hundreds of clients to build a culture of purpose, alignment, and accountability in organizations across a variety of industries. Contact Rob at firstname.lastname@example.org or 210-845-2782.