As a part of the CARES Act, small businesses across the U.S. were able to apply for Paycheck Protection Program (PPP) loans to help stabilize their businesses amid COVID-19.
Since the program’s start, more than 4 million loans have been distributed to small businesses. The average loan size is roughly $114,000.
One of the key features of PPP loans is they can potentially be forgiven. The Small Business Administration (SBA) has provided some resources to help business owners prepare to have their loans forgiven. Check out some of their resources, as well as additional information from the North American Retail Hardware Association (NRHA) below.
More on PPP Loan Forgiveness
“Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers,” the SBA states.
Previously, the SBA made available a PPP FAQ that provides helpful information to business owners who have taken out PPP loans.
Additionally, NRHA has spoken with financial and legal experts to deliver extra information on PPP. Check out episode 10 of the “Pep Talk” podcast to hear PPP insight from certified financial planner Gary Pittsford of Castle Wealth Advisors.
NRHA also hosted an interactive town hall with independent retailers across the country and Mick Terrell of Taft Law. Stream the episode now to learn more about PPP loan forgiveness from Terrell.