Many small business owners may be able to apply for another PPP Loan, if legislation introduced on June 18th is signed into law.
The Prioritized Paycheck Protection Program (P4) Act would allow businesses with fewer than 100 employees to apply for another round of PPP Funding. This would be possible if their initial loan had been used and the business could show a fifty percent reduction in revenues since the beginning of the crises. Entrepreneurs would also need to prove that they need the money, and would use it for eligible payroll and operating costs.
The bill has been introduced but is currently languishing in committee. Many in Congress do not see the need for continued assistance, given the fact that $130B is still available from the first round of funding. Others are extremely concerned about further damage to our economy, given the deficit we are running and the undeniable recession on the horizon.
But others argue that this is an absolutely necessary step to protect and maintain the small business community that drives our economy and produces most of the country’s job growth.
The senators behind the bill want to make sure that the money only goes to smaller businesses that are the most in need. 25% of the funding would be reserved for businesses with less than 10 employees and publicly traded companies would be ineligible. Further, hospitality and lodging business with multiple locations would be limited to an aggregate loan amount of $2 Million.
As the first round of PPP Lending begins the forgiveness process, we’ll follow this story to see how it shakes out.
Let me leave you with this one thought…
As we close out the sixteenth week of the shut down order, I would suggest in a loud and clear voice that you settle in for the long haul. There are two things that seem certain at this time.
First, that we will be in Phase Four of the reopening plan for a very long time. Our elected officials have repeatedly said that they will not go to Phase Five until a working vaccine is in place.
I’m certainly not a doctor. I don’t even play one on TV. But everything that I read tells me that a vaccine for this virus is a long way away. It could be six months, a year, or maybe never. It has to be discovered, approved, and produced in large enough quantities for it to make some sort of a difference.
I’m not holding my breath.
Second, that we are headed into a very rough economy. Many businesses will not make it through this mess. Others that do, will certainly not need as many employees as before. We are going to be seeing some ugly unemployment numbers for a long time. The record deficits will certainly continue.
As long as fear continues to lead our collective consciousness, the economy will not recover.
Take some time this weekend to relax and collect yourself. Do whatever it takes for you to center your soul. Exercise, read, play; whatever it takes. You are no good to anyone if you can’t make the decisions necessary to lead your business.
Spend some time with your loved ones. Let your spouse know that you truly love them. Put your arms around your children and let them know that they are adored, cherished, and the most precious things in your life.
When you come back to work on Monday, do something special for your employees. Let them know that you have every possible respect for them and their hard work. This isn’t easy on anyone. Employees that are concerned about the future aren’t terribly productive.
But most of all, take some time to take care of yourself. Leaderless armies don’t do much other than drink way too much. Spend some time this weekend finding your smile. Only whatever God you pray to has any idea what’s going to hit all of us next week.
Whatever you are going through, whatever your nightmares happen to be, know that we are here to help.
Accounting Solutions Ltd. stands ready to complete its mission and purpose of protecting you, your family, and your business. If there is anything that you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
CONFIDENTIALITY NOTICE AND LEGAL DISCLAIMER. The information contained in this email message, including any attachments, is legally privileged and confidential and intended only for the addressee(s). If you are not the intended recipient, you are hereby notified that any reading, use, or dissemination of this message is strictly prohibited. If you have received this message in error, please notify us immediately and delete this message from your system.
Although this email and any attachments are believed to be free of any virus or other defect which may affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure it is virus free. Accounting Solutions Ltd. accepts no responsibility for any loss or damage arising from receipt and use of this email.
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.