Act Now! Amazingly SBA-PPP Loans Are Still Available

Our intrepid reporter, Eve Troutt, has been keeping track of the latest news about the SBA-PPP loans coming from the U.S. Chamber of Commerce. They say there are funds still left. Since small businesses have started applying, the loan amounts being given out are smaller than during the earlier distributions. 

Clearly, the SBA is processing more loans, but for smaller amounts. 

If a business has not applied yet, the U.S. Chamber of Commerce still thinks they should. Even better news is that they think there will be a fourth stimulus package which will have additional funds available for Paycheck Protection Program loans. Their recommendation is to get into the queue.

Applicants need to remember that the forgivable portions of your payroll and other eligible expenses start the day the PPP gets into the charity or church's business while the remaining 75% must be spent solely on payroll. The U.S. Chamber of Commerce says it is okay to pay your employees with the loan funds even if they are not actually working...even it the business or charity is closed. 

If you want to keep your people busy, however, you can use their efforts to help you learn how to order online, establish no touch deliveries, or figure out the new normal procedures per the local city and county guidelines. For some organizations, they may need to keep one employee working full time just to keep up with changing procedures. Organizations can also spend the loan on hardship pay and even give their employees small bonuses. 

To make sure things go smoothly, the U.S. Chamber of Commerce says it is a good idea to document all orders or events which were cancelled due to the COVID-19 crisis. 

The only bit of bad news is that the IRS has ruled that funds used from this grant will not be tax deductible expenses on your 2020 return. Nevertheless, the U.S. Chamber of Commerce is hopeful this may change.

Are there other resources out there to help you? They say: Yes! 

The U.S. Chamber of Commerce says it still makes sense to consider the SBA's Economic Injury Disaster Loans (EIDL) too. They were expanded due to COVID-19. SBA is currently processing the EIDL applications. They will provide an advance of up to $10,000. It will go into your accounts within three days. (They maybe a little slower than that, they caution.) 

"The first advance is a grant," writes Troutt, "the loan paperwork will follow. And yes, you can turn down the loan and still keep the grant. Even if you do not qualify for the loan, or eventually get a rejection notice, you may keep the $10,000 advance."

If you want Drew & Associates to help you apply for the SBA's Paycheck Protection Program or their Economic Injury Disaster Loans, please click on this link for more information. All it takes to get started is an initial deposit of $250.