There’s a big new development that every small business needs to know about which I’ll get to in a moment. But first, the background: Last month, Congress approved an unprecedented amount of money–over $350 billion for small business (defined as under 500 employees), to help them make payroll (or to pay themselves if they are sole proprietors who don’t pay themselves traditionally).
The most important program here is the PPP (Paycheck Protection Program); I cover it in detail in my previous Forbes article, where business-and-tax attorney Mark W. Schweighofer helps fill in the blanks.
In a nutshell–and I need to note that I am neither an attorney nor an accountant, so this is my layperson’s understanding, not to be acted on without professional counsel–the PPP offers a potentially 100% forgivable “loan” that provides you with 2.5 months reimbursement for what you spent on payroll or similar (again, this can be money paid to you as a sole proprietor) in 2019, with the expectation that you will use this to pay for 2.5 months of payroll or similar now, as soon as you receive the loan. If you do use the funds as intended, you can apply for up to 100% loan forgiveness; even if the money isn’t forgiven, the resulting loan has a stunningly low 1% interest rate.
Screen capture of PayPal welcome screen for PPP online application
This is extremely good news for the many readers I have been hearing from who lack a supportive business relationship with a traditional bank. (Word to the wise: It’s been the smaller banks and credit unions that have been stepping up here, while some of the bigger banks, shamefully, have been doing whatever they can to avoid taking applications.)
PayPal, in fact, already has its online portal to directly take applications. Here’s the link.
Best of luck. And, again, for more information on this program please visit my earlier, more detailed Forbes article.
Micah Solomon is a customer service and customer experience consultant, speaker, trainer, and training designer. Micah was recently named “the World’s #1 Customer Service Turnaround Expert” by Inc. Magazine. Reach him directly at email@example.com, visit his website, or check out his new bestseller: Ignore Your Customers (and They’ll Go Away) (HarperCollins Leadership).