So you’ve received your PPP loan, now what?
As we continue to adjust to the new world that we live in, as a business owner PPP loan has become a common term. The Treasury Department released a new Loan Forgiveness Application and updated guidance, providing further clarification on the revisions to the loan forgiveness requirements. PPP loans are still available for your business but applications must be received by June 30, 2020.
- Keep Documentation & Understand Your Forgiveness Qualifications
- Keeping documentation of all financial aspects of your business is not only extremely important for your business but will also be important in terms of your loan forgiveness. It is even more important if your loan exceeded $2 million. Keep a written file of the date that you applied, all correspondence in regard to your loan, and every payroll, payment or invoice paid utilizing the funds. 60% of your loan needs to go to payroll and no more than 40% of the loan may be used for non-payroll costs, such as rent and utilities for your loan to be forgiven. The more documentation you have to verify this, the better.
- Don’t Forget Your Other Responsibilities
- As a small business owner, you already have a lot on your plate that you are required to juggle and be responsible for. With the addition of everything surrounding PPP loans it can seem overwhelming, but don’t forget your previous and existing responsibilities as well. If it’s time to apply, re-apply, or reassess your life insurance there can often be delays in the process. If you are trying to meet a certain timeline or deadline, be sure to allow extra time in the process.
For more information regarding your PPP loan as well as more information and specifics to your life insurance policy, seeking professional help ensures the right answers! For all of your small business needs The Bailey Group is here to assist you. If you have additional questions, feel free to reach out and someone on our team will be happy to help!
Contact Us Today or call 866.207.8988
Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN). Insurance and Annuity products, including those of Equitable Financial Life Insurance Company (Equitable Financial), offered through Equitable Network, LLC, which conducts business in CA as Equitable Network Insurance Agency of California, LLC and, in Utah as Equitable Network Insurance Agency of Utah, LLC, in PR as Equitable Network of Puerto Rico, Inc. TBG/The Bailey Group is not owned or operated by Equitable Advisors or Equitable Network. AGE-154204(6/20)(exp.12/20)
Comments are closed.