Greenville, S.C. (WSPA)- Common Sense Retirement Planning financial expert Tony Dale said it’s important for small businesses in our area to know how they can use the most recent Payroll Protection Plan to their advantage.
Dale said the most important thing is that the money is forgivable if 60 percent of the money a business uses, is used for payroll.
They can also use 2.5 times what their monthly payroll totals.
It’s also still possible for a small business to take out another loan if the money isn’t enough.
Dale lays out a few facts about the new assistance for small businesses.
- This second stimulus package dedicates $284 billion to the Paycheck Protection Program by giving federal, forgivable loans to hard-hit small businesses.
- It doesn’t matter if you received a PPP loan earlier in 2020. You can still apply for one now.
- Borrowers are able to get loans for up to two and a half times their average monthly payroll expenses.
- In order to qualify for a loan:
- You need to have been in business before February of last year.
- You must have fewer than 300 employees.
- Your income must have dipped by 25% or more from any quarter in 2019 to 2020.
- The deadline to apply for this round of PPP loans is March 31st, 2021.