The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a $2.2 trillion economic relief package designed to help individuals, companies, and communities that have been adversely affected by COVID-19. Through the Paycheck Protection Program (PPP), qualified small businesses can access a fully forgivable loan to help cover payroll, rent, and utilities.
Navigating the PPP application process is complicated. At Williams Accounting & Consulting, our Atlanta small business PPP loan assistance specialists can help you get a loan approved so that you can make payroll, rent, and utilities. If you’ve already received funding, the team can ensure that you meet the requirements to receive full loan forgiveness. To get more information during a strictly confidential initial consultation, please call us at 770-964-4100 or reach out to us directly online.
As described by the United States Department of Treasury, the Paycheck Protection Program supplies cash assistance to small and mid-sized businesses through federally backed loans. Primarily, PPP loans are meant to help employers cover their payroll during the COVID-19 public health emergency. Though, other operating expenses—including commercial rent and utilities—can be covered as well. If criteria are satisfied, a small business PPP loan will be fully forgivable.
The CARES Act supplies funding for a wide range of businesses and organizations. You can apply for a fully forgivable PPP loan for a small business, a sole proprietorship, or a tax-exempt nonprofit organization.
It depends on the size and nature of your business. To start, the statutory maximum PPP loan size is $10 million. That being said, most small businesses will qualify for less funding than that. If you operate a non-seasonal business, your basic maximum loan size is 250% of your average monthly payroll costs over the last year.
As an example, if you operate an Atlanta-area restaurant and your monthly payroll is $30,000, then your maximum PPP loan is $75,000. To be clear, this is a simplified example. The technical calculation is more complicated for businesses that have highly compensated employees. Our Atlanta PPP loan consultant can help you calculate and apply for the proper loan amount.
PPP loans are fully forgivable if a small business satisfies the criteria of the program. You must use the funds for approved purposes and, for the most part, keep your employees on staff at the same rate of compensation. The federal government has put a 60/40 rule in place: 60 percent of the total value of the loan must be used to cover payroll.
Based on new regulatory guidelines and revised statutory rules, PPP forgiveness standards have been relaxed—meaning your business has some leeway in how and when it uses funds. If you have any questions about the forgiveability of these loans, our Atlanta accounting and consulting team can help.
As of June 11th, the deadline to submit an initial application for a PPP loan is June 30th, 2020. Any employer seeking funding should submit their application by June 30th. Failure to do so could make it impossible to get funding through the program.
The COVID-19 pandemic has put an enormous amount of strain on our region’s businesses. The Paycheck Protection Program provides an avenue for small business owners to cover their costs during the crisis. We do not want companies to leave money on the table. Do not assume that your business is ineligible for funding. If you suffered a significant fall in revenue due to COVID-19, our PPP specialists will assist you in navigating the process. Among other things, our Atlanta accounting & consulting team is prepared to:
We are committed to providing high-quality, attentive guidance to small business owners. With specializations in bookkeeping and payroll services, we can help you get a fully forgivable loan through the Paycheck Protection Program. If you have any questions, our accounting & consulting team is here to help.
At Williams Accounting & Consulting, our Georgia small business consultants are standing by, ready to help you get access to the financial resources you need. We can assist you in getting a PPP loan to cover your company’s payroll. To set up a completely confidential consultation, please contact us today. We serve small businesses throughout the region, including in Atlanta, Union City, Sandy Springs, Marietta, Kennesaw, Alpharetta, and Roswell.