Support to Guide & Assist your business with the PPP Loan Forgiveness Process
COVID-19 Relief funding, The Paycheck Protection Program (PPP) enables eligible entities to qualify for a loan of up to $10 million to keep their workers employed. The best part is the loan is subject to forgiveness if approved borrowers meet certain requirements as defined in SBA regarding the disbursement of the funds including expenditures for maintaining payroll and other permitted uses, such as mortgage interest, rent, and utilities.
How we assist to Maximize Loan Forgiveness
365BOOSKPRO will assist both borrowers and lenders with the necessary verification for PPP loan forgiveness. 365BOOKSPRO will work closely with borrowers to assist them to maximize their loan forgiveness benefits.
- PPP Loan Funds Planning – Assist with proper documentation that is required and relevant to the loan application. Other requirements such as allocating forgiveness funds to ensure accurate accountability with spending to appropriate loan forgiveness.
- Loan Forgiveness & Tracking – We work closely with you to monitor and provide financial reports & documentation in order to be audit compliant with your lender.
- Financial Documentation & Reporting – The 365BOOKSPRO team will provide you with superior borrower documentation and assist all the necessary procedures in order to be compliant with the banking institution & ensure maximizing loan forgiveness.
Relief funding details you need to know
The global pandemic has brought a huge crisis globally. It has created economic disruption in the world that has affected every individual and numerous businesses. To overcome their disastrous effects, governments have come up with relief packages in order to support struggling businesses and individuals. CARES Act (CoronaVirus Relief and Economic Security) was signed in March 2020 by the American President, as a relief package for American individuals and businesses that contains almost $2.3 trillion (11% of GDP) worth relief funds for people. It involves some temporary relief programs to support businesses in the Covid outbreak. It includes offering one-time tax rebates to individuals, monetary assistance worth $28 billion for expanding unemployment benefits, providing food safety for the most vulnerable, granting loans to prevent corporate bankruptcy, and small business loan programs.
The Paycheck Protection (PPP) Loan Program was launched under the CARES Act that provides assistance to employers through loan forgiveness to retaining employees that will help employers to keep their workforce on payroll during the pandemic. These loans have an interest rate of 1% with a maturity of 5 years. Moreover, the borrowers can apply for loan forgiveness if the funds were utilized for business-related expenses i.e. covering payroll costs, interest payments on mortgages, utility expenses, etc.
Economic Injury Disaster Loans (EIDL) is another relief program under the CARES Act. This loan offers economic relief to small enterprises including agricultural businesses and nonprofit organizations that are experiencing revenue loss due to Covid. The main focus of this scheme is to support small businesses in covering the financial obligations which would have met if the Covid outbreak did not occur. Terms of this loan include fixed interest rates i.e. 3.75% for business and 2.75% for nonprofit organizations, 30 years maturity with no loan fees or prepayment penalty. Similarly, other relief funds under CARES include debt relief programs.
Around $8.3 billion are reserved for Corona Preparedness and Response Appropriations Act that involves medical funding i.e. virus testing, vaccine development, and support for disease control and prevention centers. They also include offering paid sick leaves, food assistance, and funds for unemployment insurance. In addition to this, a $900 billion package is already under approval pertaining to the nation’s health crisis i.e. killing more than 3000 people per day on average. This package includes billions of dollars for critical needs such as vaccine development and distribution, supporting small businesses and jobless individuals. Moreover, through Employee Retention Credit, employers have been supported to keep their workers on their payroll. Employers of all sizes have faced economic hardships and even temporary shutdowns which severely impacted not only their business operations but their ability to pay off their employees as well. Through Employee Retention Credit, employers are given 50% tax credit on wages paid up to $10,000. Also, the IRS has issued additional tax credits to support small and mid-size businesses to cover their financial expenditures. For instance, the deferred payroll tax can now be paid over the next two years half by Dec 2021 and a half by Dec 2022.
COVID-19 Support & Insights for Business Owners
If you are a small or medium-sized business owner in the United States looking for guidance and resources to navigate COVID-19 challenges, we’ve compiled this document for you. During this unprecedented time, it is important to learn from one another about how to navigate the many issues businesses encounter, scams business owners should be aware of, as well as answer questions business owners have about gift certificates, loan payments, emergency funds, re-open businesses, and more. The document also includes information from non-governmental resources as well as federal, state, and local areas. Funding opportunities, answers to burning questions business owners have on ways they can re-open safely, and more.
Small businesses everywhere have already overcome more challenges than we ever imagined dealing with COVID-19. What if your employees do not return? How will your business operate? This video aims to help you navigate employee and customer concerns. You will also find FAQs employers have to address various employment and unemployment challenges.