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On April 24, 2020, Congress passed a $484 billion relief bill to further help small businesses, hospitals, and testing facilities during the COVID-19 crisis. Find out what this could mean for your preschool or child care center.
What has changed: As part of the $484 billion relief package, the PPP was given an additional $310 billion in funding to provide loans to small businesses. Starting on April 27, 2020 at 10:30am ET, the U.S. Small Business Administration will resume processing existing applications and start accepting new ones.
As a reminder, the PPP is designed to encourage lenders to provide loans that help small businesses make payroll, provide benefits to workers, and make necessary payments, such as utilities, mortgage, and rent. Businesses who qualify for PPP loans can get the lesser of either two and a half months worth of eligible payroll costs or $10 million. You’ll need to have your full time equivalent (FTE) levels the same or similar to what it was before the COVID-19 crisis in the eight weeks after you accept this benefit to maximize what’s forgivable.
Who qualifies: The parameters for the PPP haven’t changed since it was first introduced on March 27, 2020. Sole proprietors, self-employed individuals, nonprofit organizations, for-profit small businesses, and businesses with multiple locations with less than 500 employees per location are eligible to apply. You can calculate the maximum loan amount for your business type here.
How to take advantage of this benefit: The $310 billion injected into the PPP is expected to only last several days, so we recommend taking action as soon as possible. If you’ve already submitted an application, you’ll want to verify that all of the information is correct to ensure quick processing. You can contact your lender to check the status of your application. Businesses who are new to the PPP can apply for PPP loans by finding a participating lender here.
View this article for a breakdown of the CARES Act—including the top six things providers need to know about the $2.2 trillion stimulus package passed in late March.
