Division of Small Business

Applying for a PPP loan? You’ll want to read these suggestions from Inc. magazine

Inc. Magazine and the U.S. Chamber of Commerce hosted a webinar last week with advice for small business owners on applying for the $349 billion Paycheck Protection Program (PPP).

The magazine summarized some of the major takeaways from the webinar in an article:

1. Accepting a reduced PPP loan of less than 2.5 months payroll can be risky. “If I knew I needed the two and a half months, I would find a lender [offering] the two and a half months,” said Neil Bradley, executive vice president and chief policy officer for the U.S. Chamber of Commerce.

2. It’s not certain there will be funds for you from the Small Business Administration’s Economic Injury Disaster Loan program. Businesses should be able to get a loan for up to $2 million but many are being told they can only receive $15,000 Bradley said.

3. Be careful in completing the PPP application. The PPP loan coversĀ  2.5 months of payroll. Applicants are required to calculate their monthly payroll. Two common mistake applicants make is including the pay of independent contractors and not capping the pay for individual employees at $100,000.

Click here to read the full article from Inc.

And check out this resource guide Inc. put together for surviving during and re-opening after the crisis.




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