Business through COVID

Many have heard and asked about the PPP Loan, also known as Paycheck Protection Program designed by our federal government. This is a way for business that is/has been impacted by the closure and/or delay of operations with staff, self employment, supplies, and other measures to apply for and use as temporary means to stay afloat. 

If you have any questions or need guidance in regards to the PPP Loan, feel free to contact us. 

What can a PPP loan be used for? 
​At least 60 percent of the loan must be used for payroll and employee benefits costs.
Payroll costs under the PPP include:

• Compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips)
• Payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health career group life, disability, vision, or dental insurance, including insurance premiums, and retirement
  
• Payment of state and local taxes assessed on compensation of employees; and
• For an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.

The remaining 40 percent can be spent on:

• Mortgage interest payments (but not prepayments or principal payments)
• Rent
• Utilities
• Interest payments on any other debt obligations incurred before February 15, 2020
• Refinancing an EIDL loan made between January 31, 2020 and April 3, 2020
• Operations expenditures such as accounting or tracking of supplies
• Property damage costs due to public disturbances in 2020 not covered by insurance
• Supplier costs such as cost of goods sold
• Worker protection expenditures to be COVID compliant

                                  Note to all businesses: Govern your business accordingly.

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