The Payroll Protection Program, or PPP, was one of the best-known relief programs available for businesses. Although the program had its issues, many small businesses were able to receive funds to keep paying their employees. The second round of the program came to an end in early August. If you missed out on the program, or need more help, there are still a few other Covid-19 relief avenues for you to try. All of the programs require paperwork and documentation. If your place of business doesn’t have these at the ready you probably need our help, either a virtual assistant, bookkeeper or Process Management service.
- Federal disaster loans – The CARES Act passed by Congress earlier this year included a loan program called the Economic Injury Disaster Loan, or EIDL, given out through the Small Business Administration. The program’s generosity has shrunk over time, (at one point businesses were eligible for up to $2 million dollars, but loans are now capped at $150,000), but they’re still a very good deal. As inc.com writes, “Not only do they offer a 3.75 percent interest rate and 30-year maturity, payments can be deferred for one year. And the money itself can be used for just about any business purpose, unlike the PPP, which requires that the majority of the proceeds go to support payroll costs like salaries and benefits expenses.”
- 7(a) Loan – This SBA program pre-dates the pandemic. It doesn’t have the same restrictions the PPP has in regards to what the money can be spent on. And even though 7(a) loans have been around for years, the CARES Act includes a provision that will make them more attractive to business owners. As Gene Marks reported in the Philadelphia Inquirer, “That’s because for any Section 7(a) loan closed before Sept. 27, 2020, the CARES Act provides for the forgiveness of the first six months of both principal and interest payments, plus any related fees, for the borrower. In real terms, it means that a small-business owner can save about $33,000 on a $500,000 loan.” Again, the loan must be closed, not applied for, by September 27.
- Employee Retention Tax Credit – This Coronavirus relief program is also part of the CARES Act. The IRS explains, “The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.”
If you need VersaTel Solutions’s help getting your paperwork together, give us a call. We have virtual assistants, bookkeepers, and our new Process Management service that can help. We’ll work with you to find the best fit for your company