|Did you know: Funds for the latest Payroll Protection Program are still available?
According to The Wall Street Journal, as of May 15th, over 40% of Paycheck Protection Program (PPP) funds were still available nearly two weeks after the program was relaunched in late April. The first PPP was exhausted in two weeks so it is a surprise that applications for this second relief program ($310 billion) has slowed down. If you meet the requirements, apply today to ensure payroll to your employees.
Application and eligibility criteria here.
If you have received PPP funds…
Here is the next step to ensure your loan converts to a grant. This is the application form, released on Friday, May 15th, that can have your loan forgiven.
An overview of eligibility/conditions to turn your PPP into a grant:
- Document payroll costs incurred during the Covered Period or the Alternative Payroll Covered Period.
- Payroll costs that are incurred, but not paid, during the borrower’s last pay period of the Covered Period or the Alternative Payroll Covered Period are eligible for loan forgiveness if paid on or before the next regular payroll date
- For each individual employee, the total amount of cash compensation eligible for loan forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period (or $15,385, the 8-week equivalent of $100,000)
- Business mortgage interest payments
- Payment of interest (but not including any payment or prepayment of principal) on any business mortgage obligation on real or personal property so long as the mortgage was in place on Feb. 15, 2020
- Business rent or lease payments so long as the lease agreement was in place on Feb. 15, 2020
Business utility payments for services for electricity, gas, water, transportation, telephone or internet access so long as the service was in place on Feb. 15, 2020.
The clearest explanation of this new requirement/application, believe it or not, comes from the National Law Review. Written for laypersons, like you and WVF, this article provides a clear and non-legal description of the requirements to turn your loan into a grant:
New grant opportunity: Ginger Bread Grants to be awarded to businesses with over $250K in 2019 with paid staff of five or more.
GingerBread Capital invests in the next generation of women founders and entrepreneurs leading high-growth businesses. In response to the Covid-19 pandemic they are offering grants to women-owned businesses, achieving ovr $250K in revenue and staffing five or more employees. Must be in business at least two years.
Maintain your inner grit and determination!
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