Many small business owners feel lost in the shuffle when it comes to securing a Paycheck Protection Program (PPP) loan. The program was created to help small businesses stay open and continue to pay employees for up to 8 weeks, with a portion forgiven if used to cover payroll, utilities and leases. The first round of funding — $349 billion — ran out only 13 days after the program launched and many applicants never received a response from their bank as to whether or not their application was received, much yet approved. Another $310 billion has now been infused into the program and the dedicated team at Orlando based CPA Accounting & Tax Services has outlined tips that outline what you need to know about the second round of PPP loan funding.
Tips for Small Businesses Applying for a PPP loan
1. Consider a Smaller Bank
While the larger banks were struggling with enormous volume and questions relating to the issued Federal guidance, many small local banks were able to process the PPP loan applications for local small businesses more efficiently. That personal touch and availability at all hours of the day and night to work on submitting applications with their clients has been credited with streamlining the process and affording small businesses an edge in getting their PPP loan application submitted and processed form a community bank or credit union.
2. How Long Does It Take To Get Your PPP Funds?
According to multiple sources and from what we have seen here at CPA Accounting & Tax Services, if you were approved for a PPP loan and received confirmation from your lender, you can expect to receive PPP funds in around seven to 10 days.
3. Understand Your Responsibility If You Receive A PPP Loan
For those small businesses who have received a PPP loan, it is critically important to use the funds carefully. Importantly, while you want to maximize the feature that makes the portion of the PPP loan forgivable on expenses like payroll, rent and utilities, you want to stay out of legal trouble for any potential misuse of the funds. It is importance to stay abreast of the rules and make sure proper governance is put into place in your organization to make sure the money is used appropriately.
Further, if your business has been approved for a PPP loan, you want to be sure to check the most current rules and guidance before accepting the funds. The rules and guidelines issued have been continually changing and in some cases, can render your business ineligible.
Navigating through the Payment Protection Program can be difficult. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, International Tax Services and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today: www.cpaaccounting.biz