2021 is finally here, and there are already lots of activities and events waiting to happen, one of them being a new stimulus deal. Due to the acute effects of the ongoing pandemic, many Americans have greatly limited their work time. Some people have even lost their jobs, causing a huge debt burden on many American families. According to data gotten from extensive research, an estimated 30-40 million Americans are at risk of losing their homes. The unemployment rate is at an all-time high, and business owners have had to witness the gradual collapse of their ventures. The ongoing Covid-19 pandemic has caused significant damage to America, with over 20 million confirmed cases and 346 thousand deaths and rising. The newly proposed stimulus package and the $2000 relief checks will go a long way to alleviate the suffering millions of Americans have endured. This relief bill will also prove beneficial to small business owners seeking to make something out of the constant economic rot. We will be giving instances at which the stimulus package will prove to be very vital to small business owners and how it will spearhead the gradual return to normal daily activities. (Note that the bill hasn’t been passed by the senate yet when this article was written).
Ways the Latest Stimulus Package Will Help Small Business Owners
- Forgiveness of Paycheck Protection Program Loans:
The new stimulus bill will bring about loan forgiveness for small businesses. This loan forgiveness will help eliminate heavy debt incurred by small business owners. Some conditions need to be obeyed for the PPP loan forgiveness to work. The small business owner should ensure that the loan collected didn’t exceed $150,000. Forgiveness of such loans is carried out under the CARES act. This act applies only to federal loans.
- Opportunity for Second PPP Loans:
Due to the efforts of House Democrats, an opportunity for second loans has been made possible. There are, however, factors that determine which small businesses are eligible. The said business must have not more than 200 employees at their disposal. These employees must have also received a significant reduction in their quarterly income, with a 25% reduction in revenue expected.
- Grant Program:
There is also a possibility of a $120 billion grant made available to small businesses by the U.S Treasury. This grant will give small business owners the necessary funds to cover expenses ranging from rent and supplies to PPE. Such funds will go a long way to get small business owners out of tight corners regarding debts and bills that are long overdue.
- Simplification of New Loan Applications:
Small business owners will apply for new loans without too many complications. There will be a few requirements before they can secure a new loan. First of all, the small business owner will have to provide a detailed roster of the individuals still working for him/her due to the aid received. Secondly, you will need to show a concise payroll sheet, which will help describe the loan amount used for expenses. Finally, a proof or attestation of accurate information will need to be shown and other requirements above and a detailed plan to keep the loan records for the discussed period.
- Tax Credit for Employee Retention:
This tax credit will be essential for small business owners that still have paid employees. For small business owners to access this tax credit, they have to pass the following criteria. One of such criteria is to be among the chain of businesses suspended by the Government due to Covid-19 lockdown guidelines. Gross receipts for the employer for 2020 must also be 50% and below compared to the quarter of 2019. Employee Retention Tax Credit serves as a sort of encouragement for employers to retain their employees and keep them on their payroll.
To know more about federal loan involvements and enroll in a suitable loan deal, do not hesitate to come to Sky Business loans. We are more than capable of providing you with essential financial backup and affordable loan deals to give your business a significant head start. You can contact us at 3101 Yandell Dr, El Paso, TX 79903, United States. https://skybusinessloans.com/.