The CARES Act was signed by President Trump on March 27, 2020, for the specific purpose of offering financial relief to small businesses that were negatively impacted by the COVID-19 pandemic. The acronym, which stands for Coronavirus Aid, Relief and Economic Security Act, will work to augment Small Business Administration loans. The CARES Act is also set up to offer loans to nonprofit organizations.
In the case of rent, payroll, and other operational expenses, companies may be able to obtain very low-interest rates on the loans. However, when loan proceeds are spent on "qualifying expenses," the entire amount may be subject to forgiveness.
It's important to note that loan forgiveness depends on the specific use of funds and that acceptance into the (7) Paycheck Protection Program (PPP) is not guaranteed. All loans, however, have the full guarantee of the U.S. federal government and are not guaranteed by individuals or businesses. Applicants should know how to apply, what "eligible expenses" are, and how to meet all requirements for loan forgiveness.
The law is careful to include e-commerce companies. The list of requirements for (7) Paycheck Protection Program eligibility for E-commerce businesses is the same as the list of requirements for brick-and-mortar entities.
Who Can Apply?
Keep in mind that the CARES Act should be intended to support Small Business Administration loan programs, not replace them. The offer is based on particular legislation designed to bring economic relief to companies hardest hit by the national COVID-19 business shutdown.
If you are a business or nonprofit with fewer than 500 employees or are self-employed, you may automatically qualify for the (7) Paycheck Protection Program eligibility for your E-commerce businesses. E-commerce businesses also qualify based on the legal language in the CARES Act. In fact, the Paycheck Protection Program loan forgiveness for E-commerce businesses marks the first time in U.S. history that a government-backed loan program provided for e-commerce entities.
How To Apply
The application process for Paycheck Protection Program SBA Loans for E-commerce businesses may be straightforward and simple to many applicants. Applicants do need to remember that there are criminal penalties for making false statements on applications. However, if you find the application process daunting, our team of small business accountants here at Fusion CPA is here to assist you.
Applicants for the PPP Paycheck Protection Program SBA Loans for E-commerce businesses may be eligible to borrow up to $10 million.
The loan amount that can qualify for forgiveness depends on the specific use of funds. For example, using loan proceeds to cover payroll-related expenses, utilities, rent, or debt interest may be eligible for full loan forgiveness. Paycheck Protection Program loan forgiveness for E-commerce businesses only applies to those operational categories of expenses.
Taking the Next Step
The team of accountants at Atlanta-based Fusion CPA stands ready to assist clients with the application process for Paycheck Protection Program SBA Loans for E-commerce businesses. Even before applying, it can help to know exactly how you will use the loan proceeds, how much you should borrow, and whether some or all of the loan amount will be subject to forgiveness.
The PPP Paycheck Protection Program SBA Loans for E-commerce businesses may be a great way to recuperate losses suffered as a direct result of the recent economic slowdown. Owners should not assume that their loan amounts will be forgiven just because they are accepted into the program. The key element is the "use of funds." At Fusion, we offer to walk applicants through the entire process and help maximize the percentage of loan forgiveness. The CARES Act is unique in the history of U.S. taxation. Business owners should take advantage of all it has to offer and we are here to assist. We have the resources to quickly respond to your needs. Contact us today at 404.955.7338. Our team is here for you.
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