In addition to financial assistance to families, the government of USA also has programs to help small companies that have managed to keep their workforce, despite the effects of the coronavirus pandemic.
Its about Payment Protection Program (PPP), which is in charge of the office of the United States Small Business Administration, and is aimed at those companies that meet certain requirements.
Government loan forgiveness
Businesses may be eligible for such government loan forgiveness, it is an economic stimulus plan to help maintain the labor market.
Since with the coronavirus pandemic, job sources were strongly affected, which hit not only the family economy, but also of small companies, which have struggled to survive and maintain their workforce, despite the adversities they have faced.
Thus, economic support is also extended to small companies.
The government of The United States has been working on several fronts to alleviate the effects of the pandemic, On the one hand, the extension of the stimulus checks so that families can cover their basic expenses, forgiveness, as well as the vaccination plan against COVID-19, to gradually reopen businesses and reactivate the economy.
Although it is expected that the goal of having 70% of the population vaccinated before July 4, Independence Day, was not achieved, the president of the United States has called on the population to go to get vaccinated against COVID-19Those who already have the first dose should have the second dose applied, especially now that the delta variant is a risk for the population.
Now, let’s get down to the conditions for small businesses to be eligible for forgiveness.
It is effective for businesses that for the eight to 24 weeks after the loan were able to maintain their workforce and employee compensation scheme.
In addition, of power verify that the resources of the government loan were used for payroll costs and more eligible expenses.
Also the companies interested in the cancellation, have to verify that 60% of the profits obtained were destined to the remuneration of the workforce.
When to apply for forgiveness?
It is important that the companies that wish to apply have already exhausted the resources of the loan and make the request before the expiration of the loan, otherwise they will have to start paying it according to the established dates.
So, those interested in applying for loan forgiveness have to make the request before the term of the loan expires.
For more details you can consult the site of the office of the United States Small Business Administration.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.