As the Coronavirus pandemic rages on, the federal government is lending small businesses a helping hand.
Gradient once again.- - as the coronavirus pandemic - rages on, the federal - government is lending small - businesses a helping hand.- news 25's victoria bailey sits- down with a certified public- accountant to learn more about- the payroll - protection program.
- - the coronavirus aid, relief, an- economic- security act or the cares act - continues to offer support to - those impacted by covid-19.
- "the cares act created a progra- called the payroll protection - program also known- - - - as ppp,"- the act makes 349 billion - dollars available as loans to - help keep small businesses- - - - afloat during this pandemic and- the program is unfolding in - rounds.
- "the ppp program is for any - small business that basically - has under 500 employees - that's around one and it doesn'- matter what type of business- - - - structure you are, you would- actually qualify for it if you- have employees you're paying a- w-2 on" - the loan is based on the- calculations of the payroll for- all of 2019.- "the benefit to the government,- like i said, is it keeps people- off of the- unemployment lines.
The - benefit to the employees is tha- the employees will get a steady- paycheck and- more importantly- they don't lose any of their- employee benefits like their- - - - health insurance as well as - their retirement benefits.
Now,- the benefits for the employer i- that a- - - - small portion of this ppp loan- is made available to that - employer to pay rent- and utilities and also somethin- more important is whenever we - actually are able to- reopen for business that the- employer will have a full - workforce in place at the time- - - - of open so you don't have to go- through job fairs or pre-hiring- people and bringing - back people on and leveling up- you can just start out the gate- like things were before this- situation happened" - friday, round two begins and it- includes real estate agents,- landscaping - companies, hair stylists and- those who work in construction.- "the problem with this is that- sba has been very slow to issue- guidance to the banks - and everything as far as how- they're going to calculate the- loan amount because most- of these people fall under- schedule c under their income - tax return so they're still - trying to work through how- they're going to determine the- loan amount"- - - - however, c.p.a.
Dan burton says- it's important to work to get - your applications - in for this program and give th- process, time.- "stay calm.
The governments not- goning to run out of money.
- there's been- a rush to get all of these- loans, be diligent, and get you- applications- - - - completed, get them turned in.- the second thing is, there no - closing costs related - to these loans which is very- beneficial to a small business- because the sba is- actually paying the banks to do- the loans and they're actually- paying the banks a fee- - - - so like the accountant or your- attorney can actually help in - the application part of it" - - for more information on the - paycheck protection - program you can visit sba dot - gov
Thirty-five percent of small business owners across the United States say their business cannot survive more than three months in..
As the Coronavirus pandemic rages on, the federal government’s lending small businesses a helping hand.
