PPP Update for Small Businesses

Good morning, Bloom family!

We’re trying hard to keep these newsletters to a minimum by only sending them at the beginning of each month, but this was too important not to share!

Check it out below!

We’re almost as excited as Jessie Spano on caffeine pills 

“Hey, hey, hey. What.is.going.on.here?”

Self-employed PPP borrowers will have their loans fully forgiven!

The SBA announced on Wednesday that it’s ensuring full forgiveness of PPP loans for self-employed individuals, freelancers and independent contractors – those whose loan amount was based on 2.5 times their 2019 monthly income. YAY!

There has been much debate about what the final ruling would be on how much, if any, self-employed folks would have to pay back since “payroll” looks a little different for solely owned businesses that don’t have traditional payroll. This is great news for many of you and I’m so relieved that we don’t have to worry about this any longer!

Also, self-employed business owners and other borrowers with fairly straightforward cases will be able to use a new, shorter “EZ” form to seek loan forgiveness. Unlike the old form, it does not require detailed information and other documents to prove a claim. This will make things a LOT easier and hopefully will expedite the process as well. Lenders are not yet ready to begin accepting forgiveness applications, however. 

PPP loans are still available through the end of this month. US Bank, PayPal, Kabbage and Associated Bank are a few lenders that are still actively accepting applications. 

You can find the official documentation regarding forgiveness guidance here beginning 6/19/20 when it’s officially released.

What’s up, preppies?” 

EIDL is back!

The SBA also announced that the Economic Injury Disaster Loan (EIDL) grant and loan programs were re-funded. These will again be on are first-come, first-serve basis, so if you didn’t take advantage of this low interest business loan the first time around, I recommend applying right away. The SBA is accepting applications until December 31st or when the funds run out, whichever comes first.

  • As a reminder, sole proprietors, freelancers and independent contractors are eligible for this program – in addition to LLC and S-corp owners
  • The money can be used to pay for things like rent, payroll, business debt and any other business-related expenses. 
  • You can be approved for and receive both a PPP loan and an EIDL loan 

Don’t forget that you could also receive a $1,000 per employee grant (up to $10,000 max) as part of your EIDL application. Note: the word ’employee’ is being used very loosely and is intended to include anyone who is self-employed, whether or not you actually have ’employees.’ 

Are you on the fence about whether you need EIDL or not? Consider the uncertainty of what might happen in the next 6-9 months and beyond…will there be a second wave of Covid-19 in the fall like the experts are predicting? Will we be forced into quarantine again and work comes to another standstill? Having some extra cash to tap into if we find ourselves facing round 2 of ‘Rona might be a smart financial move. The interest rate is very low (much lower than lenders typically offer on traditional business loans) and the repayment terms are generous. Plus, there’s no prepayment penalty if you were to payoff the loan sooner than required. Just a thought – your future self will thank you! 

Learn more about the program and apply here.

Gosh, I miss the 90’s!