The Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to help small businesses like yours pay employees during the COVID-19 crisis. Acceptance into the (7) Paycheck Protection Program from the Small Business Administration (SBA) is available for technology companies and firms with fewer than 500 employees. This program may help your business to weather the upcoming weeks if you're seeing declines in revenue due to COVID-19.
Under the CARES Act, businesses may be entitled to full loan forgiveness as long as they comply with the proper use of funds. SBA may forgive the full loan amount as long as a business keeps all employees on payroll for eight weeks and uses funds to cover eligible expenses. So, let’s discover what you need to know to gain acceptance into the (7) Paycheck Protection Program.
Small businesses like yours may be eligible to receive loan amounts totaling up to 250 percent of their average monthly payroll expenses. Paycheck Protection Program is designed to help your technology company cover the following expenses:
Family and sick leave
Rental fees in force before Feb. 15 of 2020
Mortgage payments incurred before Feb. 15 of 2020
Utilities with service beginning before Feb. 15 of 2020
The Small Business Administration is offering fully tax-free debt forgiveness on PPP Paycheck Protection Program SBA loans for technology companies. That means that there may be no need to claim the debt amount forgiven as taxable income. Each borrower is capped at $10 million.
The Terms for PPP Paycheck Protection Program SBA Loans for Technology Companies:
Each loan has a maturity of two year
The interest rate should be 1 percent
Loan payments are deferred for six months
No collateral or personal guarantees are required
No government or lender fees will be charged
No prepayment penalties
There is no interest if your business receives Paycheck Protection Program loan forgiveness for technology companies by satisfying the requirements for use of funds. However, the terms may apply for any percentage of the loan that does not qualify for loan forgiveness.
The Application Process for Paycheck Protection Program SBA Loans for Technology Companies
You may be required to fill out a four-page application to claim (7) Paycheck Protection Program eligibility for your technology company You may also need to share your company's average monthly payroll expenses, number of employees, and intended loan use. The loan amount you can qualify for should be determined by your company's payroll expenses.
You must go through an approved SBA lender when applying for PPP Paycheck Protection Program SBA loans to receive loan forgiveness. Your lender may review your 2019 business figures to determine your loan amount. You should be prepared to submit your company's 2019 tax return and payroll records.
The acceptance date for PPP Paycheck Protection Program SBA loans is set to expire on June 30 of 2020. However, this isn't something you should hesitate on if your tech company or firm needs funds to cover payroll and other qualifying business expenses in the face of lost revenues or declining business from COVID-19. Here at Fusion CPA, we work with technology firms seeking to apply for the PPP loan program.
If your firm is seeking financial assistance via the Paycheck Protection Program, our small business technology company accountants recommend working with an expert to assist you and help ease the process and our team of accountants is ready to help you through the process of applying, determining eligibility, and optimization for loan forgiveness. 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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