Three Reasons Why a PPP Loan Could Be a Good Option For Your Small Biz
By now, we’ve all heard plenty about the SBA’s Paycheck Protection Program (PPP) – including stories, good and bad – about small business owners’ experiences with it. Despite some of the negative press, however, a loan through the PPP can be truly beneficial for many small businesses. With the new deadline to apply coming up (officially August 8, 2020 – CEF is accepting applications through Thursday, August 6th), below, we explain three reasons why the PPP could be a good option for you and your small business, in case you’ve been on the fence about applying.
Three Reasons Why the PPP Could Be a Good Option For Your Small Biz:
Reason #1: It could end up being free money.
If you follow the rules outlined by the SBA for PPP loan forgiveness, you can have your loan fully forgiven.
But what happens if you don’t meet the requirements for full forgiveness? For some businesses, this could still serve as a quite favorable situation. The PPP has a 1% interest rate and loan payments deferred for six months – generous terms for a small business loan.
You might think it’s not worth it for you to go through the application process if you need a small loan. But we know that smaller and smaller businesses are applying, and receiving, the PPP loans now, as compared to the first round of funding. For us, the smallest loan we processed was $300. It might seem small, but that loan was a lifeline for a business who needed it.
If the application process seems daunting or confusing, we can help! Our team of Business Coaches can help you through the application process. Call us today to connect with them if you need assistance.
Reason #3: There’s still time to apply.
On July 6, 2020, the Paycheck Protection Program was reopened when the President signed the program’s extension legislation. The new official closing date of the program is August 8th, 2020. Please note, the last day CEF is accepting applications is Thursday, August 6th, to allow for processing time.
CEF’s advisors provide helpful suggestions of an educational nature that are not intended to mandate or supersede the business practices or decisions of your Company, its owners, or managers. The information provided in this guide does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available herein are for general informational purposes only. You should contact your attorney to understand your rights and for legal advice about your specific situation.