Julien here! If you're a small business owner like me, you're likely scrambling to understand the new CARES Act, and specifically how the SBA's Economic Injury Disaster Loan (EIDL) and the Payroll Protection Program (PPP) can help support your business during these times.
After spending countless hours over the last couple weeks reading articles, scanning the legislation, and attending webinars on the topic, I decided to share what I know with the community at large.
Recently, I posted on Facebook offering to help people understand the PPP, and I was quickly inundated with direct messages and questions. If you want to see what others were asking, you can see that Facebook conversation here.
It became clear the business community needed support. So, I decided to create this PPP Resource Guide to hopefully save you valuable time.
In this video, I walk you through how to use my resource guide, which covers the most important aspects of the PPP.
Note - I will continue to update the Google Slide deck (which I've linked to below) as new information becomes available. However, this video above was filmed as of April 1st, 2020.
This PPP resource guide is intended for business owners who are struggling to understand the different relief programs now available through the CARES Act. If you’re one of the many businesses that’s been negatively impacted by COVID-19, I’m hoping the research I’ve done will help create some clarity and get you the money you need to keep your business afloat and keep your team employed!
Julien, are you an expert on PPP?
No. I’m by no means an expert and I encourage everyone to do their own due diligence to determine what's best for your business, but I have spent the better part of a week researching the different options and reading through the legislation. This presentation includes the most important details, and it’s focused primarily around the Payroll Protection Program (AKA the PPP) because as of right now it appears to be the most impactful program available for many small businesses.
Why do you recommend the PPP?
In contrast to the Economic Injury Disaster Loan (EIDL), the PPP is structured in a way that much of the loan amount can be completely forgiven if it’s used for its intended purpose.
In short, if you’re a payroll heavy small business and you’ve been negatively impacted by COVID-19, you should be able to qualify for a PPP loan that will be equivalent to 250% of your monthly payroll, healthcare, rent and other qualifying expenses. To the extent the loan is used for these “qualified expenses,” those dollars will be forgiven. The remainder can then be paid back, or converted to a favorable low interest business loan with an APR of 0.5% and a two year term.
With that, let me know if you have additional questions. I'm always happy to share what I know, and I've included my contact info on the last slide of the presentation.