Escaping the negativity that's been created by the COVID-19 pandemic may have been challenging for several small businesses. If you're operating a marketing agency, you've likely taken a hit. Depending on the type of niches you serve and the number of clients the revenues you are used to generating may be extremely lower, especially if you're running PPC campaigns for clients. For example, the sales departments for automobile dealerships have been closed in some locations, which means advertising has been halted since customers can't buy cars in person.
Fortunately, the government passed the $2 trillion CARES ACT, which includes the Paycheck Protection Program (PPP). Acceptance into the (7) Paycheck Protection Program provides businesses with a loan that can go as high as $10 million. Understanding the ins and outs of the application process for Paycheck Protection Program SBA loans for marketing agencies may help you determine if this program might assist your marketing agency. If it can help cover the cost of your employees who work with search engine optimization, PPC marketing, or social media marketing, it might be worth exploring.
Using one of the PPP Paycheck Protection Program SBA loans for marketing agencies may help your current financial situation. It can provide you with a 100 percent guaranteed way to acquire the funds you need to pay for major expenses such as payroll and rent.
Loan Amount Terms and the Period Covered
If you're interested in receiving some type of loan amount within the $10 million range, it's essential to know the terms and period covered. The conditions associated with Paycheck Protection Program loan forgiveness for marketing agencies are a fixed rate should be no higher than 4 percent. Acceptance into the (7) Paycheck Protection Program may provide you with a loan equal to 2 1/2 times your average payroll costs spent each month for the past 12 months you've been conducting business.
Understanding (7) Paycheck Protection Program Eligibility for Marketing Agencies
Meeting the guidelines required for (7) Paycheck Protection Program eligibility for marketing agencies requires you to have been operating before February 15, 2020. If you have employees working on optimizing PPC campaigns, SEO, or taking care of social media sites for clients, you likely meet the conditions for eligibility. To be considered a small business you can't have over 500 employees at your business or nonprofit, and you can be self-employed.
If you are thinking of taking advantage of the CARES ACT and the application process for Paycheck Protection Program SBA loans for marketing agencies, the use of funds must be for:
- Payroll (You can also include sick leave, retirement benefits, health insurance premiums and payroll tax)
- Other debt or mortgage interest originating before February 15, 2020
The Application Process for Paycheck Protection Program SBA Loans for Marketing Agencies
The depletion of the first wave of money allocated for the PPP went fast. The first round funded companies with $349 billion and second funding is set to provide $310 billion. The federal government should approve this program near the end of April.
Having the ability to pay rent and your employees who handle marketing campaigns for your clients may be highly advantageous. If you think you want to apply for a loan amount from the PPP, it's important to find a banking institution that's affiliated with the Small Business Administration. You may also need to have a copy of your 2019 tax return and payroll expenses to apply.
Providing Loan Forgiveness
The PPP may provide tax-free debt forgiveness, which can be highly beneficial if the use of funds for your marketing agency would be to pay for utilities and employees to set up PPC ads or optimize social media digital assets for clients. By providing loan forgiveness, you won't have to stress about paying back the funds you used during this historic time. Here at Fusion CPA, we work with marketing firms seeking to apply for the PPP loan program.
If your firm is seeking financial assistance via the Paycheck Protection Program, our small business marketing 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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