Being a small business during a pandemic happens to be one of the hardest things that most have ever seen. The pandemic has stopped many businesses from operating for many weeks and even months. This time that a small business has not been able to sell their product or service has a major ripple effect through the economy and the small business owner as well. Most small business owners make enough to live their life and continue to operate their business but usually not much more. Now as the stores were all closed they had to halt production and layoff the workers they had employed. Now the closure means that more families are also without money. The government enacted a plan to help these small business owners to try and keep them afloat until they are able to open their doors again. One of the plans was called PPP or paycheck protection program. There are lots that business owners are not sure of when applying for or receiving this help. Mecham Dicus & Company outlines what you need to know about the paycheck protection program and your business.
Is the Payroll Protection Program Only for Large Businesses
The first question that people have as a small business owner is can this loan be used for small businesses or is it for larger businesses only. The answer is that if you are a small business, you are the entity that was thought of when the program was created. This can be businesses that are set up as a sole proprietor, an independent contractor or even a self employed person. You want to make sure that you apply for the PPP and get the help that is there to keep you as a business owner open and functioning.
Payroll Protection Program Rules; Is there a Limit on Number of Employees
There are some business that are run as a sole proprietor and that means that you are the only one on your company as an employee. You also might be a contractor meaning that you are the one that is employed. The great thing is that if this is how you are running your business you can be eligible for the program as well as businesses that have more than one employees.
PPP Loan Forgiveness
When it comes to help that has been set up there are many that are available and for different reasons. When it comes to the PPP or paycheck protection program you are not to use this like a small business loan. The money is strictly to be used to continue to pay your employees pay and to make sure you can hire them back when you are able to open the doors of your business again. You want to make sure that you use the money that has been allocated to you in the right way so that when you file your taxes you have it all accounted for properly.