Hardwood floor and sport floor contractors whose businesses have been affected by the COVID-19 outbreak are eligible for assistance through the Paycheck Protection Program (PPP), which is offered as part of the CARES Act and administered by the federal government. Here is a link to more information about the program, and here is a PDF version of the application from the Treasury Department’s website, which is short and easy to fill out. There is no word on whether the funds for this program will be replenished if they run out, so time is of the essence.
These loans provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used for interest on mortgages, rent, and utilities.
Loans can be fully forgiven if 75% of the forgiven amount is used for payroll costs. Loan payments (if applicable) will be deferred for six months and there is no fee to apply for this program. This is a truly unprecedented offer and can truly help small businesses and contractors that have been adversely impacted by COVID-19.
Small businesses and sole proprietorships can begin applying on April 3rd, while self-employed individuals and independent contractors can begin applying for funds on April 10th.
Here is the process for applying for the the Paycheck Protection Program (PPP): You submit it to your bank. The bank will request your supporting documentation. The loan is issued from your bank via the SBA (Small Business Association). The loan has a fixed interest rate of 1%. However, if you maintain your same payroll and total number of employees and 75% of the loan is used for payroll costs, you can have up to 100% of the loan forgiven by the United States government.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. No collateral is required to apply for a loan from this program.
These forms are simple and we highly recommend completing an application if your business has been affected in any way by COVID-19.
Please note: This post is intended to offer ideas and opportunities, not specific financial advice. Please consult with your financial professional(s) concerning your specific situation.