Paycheck Protection Program Relaunch: Here’s What You Need To Know
What Salon Pros Need To Know About the PPP
Beauty professionals could have a more streamlined approach to the newest round of Paycheck Protection Program (PPP) loans under a new partnership with an advocacy group and lender. Keep reading to learn about the second COVID-19 stimulus package and more about PPP loans.
What Is The PPP?
PPP loans are forgivable loans intended to help small businesses keep employees on payroll through the pandemic. When the newest COVID-19 stimulus package is passed, the PPP would reopen with $284 billion, after closing applications for the first round of loans in August 2020. This round specifically designates $12 billion for minority-owned and very small businesses. Click here to learn more about the original PPP program, including how you can use the loan and how to apply for a loan.
How Can I Apply?
Small businesses, including sole proprietors, independent contractors and the self-employed, can apply for PPP loans. The federal government encourages applicants to work with their existing bank to apply or to find a Small Business Administration-approved lender.
For beauty pros, including hair, nails, skin, barbering and lash professionals, who do not have an existing relationship with an SBA-approved lender, the Professional Beauty Federation of California (PBFC) partnered with a SBA-approved lender Adesso Capital.
“Banks were not prepared for the tidal wave of PPP applications the first time around and were reluctant to accept applications from new small businesses,” said Damon Maletta, CEO of Adesso Capital. This new partnership allows professionals in any state to submit an early application for approval now with the hope that they will be toward the front of the line when funds are available.
What Are the Loan Details?
To be eligible for a PPP loan, your business must:
- Have been in operation on February 15, 2020
- Have been harmed by the COVID-19 pandemic
- Have the required documentation as part of the loan application
Some more details on PPP loans:
- PPP loans have an interest rate of 1%.
- No collateral or personal guarantees are required.
- Small businesses will not be charged any fees by the government or lenders.
Loan forgiveness is based on several factors, and Adesso loan professionals will assist each applicant to qualify for the maximum amount buried under law, according to the PBFC. The federal government will forgive loans if all employee retention criteria are met and the funds are used for eligible expenses. Click here to get more information on the PBFC/Adesso Capital application.
More On The Second Stimulus Package
The PPP relaunch is part of the $900 billion COVID-19 relief package Congressional leaders agreed to this past weekend. The package is now awaiting the President’s signature.
The package also includes direct payment checks of up to $600 per adult and child. The stipulations of who gets those checks and when the checks will arrive are unclear at this time.
Independent contractors, freelancers, the self-employed and gig workers would also see their assistance extended under the Pandemic Unemployment Assistance program, which was set to expire at the end of this week. The extension of the Pandemic Unemployment Compensation program provides another 13 weeks of payments to those who exhaust their regular state benefits, according to CNN.
Also included, according to CNN:
- $25 billion for rental assistance and an eviction moratorium extension
- $10 billion to help with child care assistance
- A tax credit to “support employers offering paid sick leave”
- $13 billion in increased Supplemental Nutrition Assistance Program and child nutrition benefits