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Wednesday, April 8, 2020

What is the PayCheck Program (PPP Loan) and How it Pays 8 Weeks of Expenses for Local Businesses Free!

Small business in Delta County Michigan are struggling like many others around the country to keep the lights on and make pay-roll. That can be pretty tough if you have no money coming in! Most of our local businesses have 500 or less employees and can get 8 weeks of certain fixed expenses free. They need this help because they don't have the extra capital in the bank to make it through the Covid-19 crisis. Loans are needed....but don't do enough! While this might be called a loan it is actually free as long as you use it for what it is intended.


Why would you want this money? It all depends on whether you can continue to make your expenses. If its going to be tight and you are risking closing down your business then you will want to take this loan. Personally, if you have expenses and employees you have nothing to loose by taking it.

Should you really take it? That is up to you but I will say that Delta County needs real businesses that employ people. Families need to put food on the table and the people need your business to maintain its health. You are saving your business and reducing the hardship on local families.

Who can get it? This money is for small businesses that need to get through the "hump". If we want to keep our Delta County businesses alive and kicking after Covid-19 declines then you might as well take the free money. This includes any business with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors

Is this a Loan that I have to Pay back? Its forgivable and you don't have to pay it back unless you use it for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Use the money wisely and its free for you!

Is it a lot of paperwork? From what I see I can fill this thing out in like 10 minutes. You will need to show your payroll but most businesses have this readily available so it doesn't take much time.

Who within Delta County Can Process these Loans? Any lender that is federally insured (which is most likely most) can process these loans. They may not be up-to-date as it is a new things that expires July 1, 2020. You may want to show them this article because they can fill this small form out pretty quick and get you a loan. https://www.sba.gov/document/sba-form--ppp-lender-agreement

FAQ on the loan from the Treasury Department HERE

You can download the application and take it to one of our local lending institutions.
https://www.sba.gov/document/sba-form--paycheck-protection-program-borrower-application-form

Is there help for people who don't have a business. Delta County Credit Union has some pretty interesting stuff that can help you skip a mortgage payment, get a small bridge loan to make ends meet and skip a payment. Check out their page. https://www.deltacountycu.com/covid19/

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