Deadline to Apply for the Paycheck Protection Program (PPP) is August 8th!

Updated as of July 4, ,2020

Family child care providers can still apply for a forgivable loan from the PPP program until August 8, 2020. This is an extension of the previous deadline of June 30th.

Money from this program can be used to pay yourself as well as for mortgage interest, rent and utilities (gas, water, electricity, Internet and telephone). You do not have to have an employee to apply for this forgivable loan.

This forgivable loan is a great opportunity for providers to get thousands of dollars of tax free money to support their business.

Note: Since I prepared these power point slides, I have learned that you cannot use this money for credit card or car loan interest payments. Also, Question 7 on page one should be answered “yes,” not “no.”

You should submit the PPP application form to your local bank, credit union, Community Development Financial Institutions, or other online lenders described in my article: "New Changes in the Paycheck Protection Program."

New rules allow providers to spend the PPP money over 24 weeks, rather than previous 8 weeks. I would still encourage providers to contact their lender after 8 weeks to ask for forgiveness of the loan. Don’t wait until the end of the year and be caught up in a backlog of forgiveness applications.

Your lender may ask you to fill out a form and submit receipts indicating how you spent the money. You can pay yourself payroll by writing a check to yourself. Put in the memo line of the check, "PPP payroll." Or, you can transfer money from one business account to another.

Your lender may also ask you to fill out an SBA form, “Paycheck Protection Program Loan Forgiveness Application” that is extremely confusing. I will be writing about how to fill it out in the near future. It is not yet clear what forms your lender will require you to fill out before your loan will be forgiven.

Tom Copeland - www.tomcopelandblog.com

Image credit: Small Business Administration