The federal government has given businesses more time to apply for COVID-19 relief. Are your books up to date?
Money that was allocated but not used during the initial rollout of the Small Business Association's (SBA's) Payroll Protection Program is still available to small businesses. With Congress authorizing the extension of the deadline to August 8, access to funds totaling $130 billion is still an option if you haven't already applied for the PPP.
Small businesses that take advantage of the program will benefit in more ways than one, because the SBA has worked out some of the issues in the loan-forgiveness procedures. Basically, if businesses can prove they meet the newest guidelines, the loan will be forgiven before any interest is due. Get the PPP loan and forgiveness details here.
Don't Miss Out
For many small businesses, especially those in states that are seeing a surge in COVID-19 cases, this opportunity couldn't have come at a better time. But the word of caution that my colleague Craig Feltner offered in April about not waiting too long to apply for a PPP loan still applies today: "There will be a flood of applications, and banks will likely have difficulty managing them all."
Your first step in securing a PPP loan is to ensure all your financial records are up to date and in order. Maintaining good records will also improve your chances of having the loan forgiven. It's vital that you work closely with your bookkeeper to establish procedures for tracking every dollar of PPP funding that you receive and how you use the funds.
Update Those Books
The first round of PPP funding totaled $520 billion, which was distributed among 4.8 million business owners. With the deadline extension, you've got the chance to join them. Don't hesitate — file that application today. And talk to your bookkeeper.