New Money Available Through the PPP

Updated as of July 4, 2020

Today the Small Business Administration (SBA) has announced that it is setting over $6 billion of funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs).

According to the SBA, "CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses."

This is a new opportunity for family child care providers to apply for the PPP forgivable loan. Previously, many providers have been unable to apply for the PPP through their local bank or have not tried to apply.

Since this money can only be distributed through a CDFI, here is a link where you can locate the closest CDFI to you.

Since CDFIs serve primarily low income communities, you may or may not be able to get PPP money through your local CDFI. When you contact them they can tell you ifyou qualify for this PPP funding.

What is the Paycheck Protection Program?

The PPP is a forgivable loan program to help you offset the financial losses suffered by your business because of COVID-19. You can use the money for payroll and for utilities, mortgage loan interest and rent. You can pay yourself payroll based on your profit from 2019.

The money is not taxable income and must be spent within eight to twenty-four weeks of receiving it.

Note: in the webinar and on my slides I made a mistake in indicating how to fill out Question 7 of the application. The answer to the question of whether you are a resident of the U.S. should be "yes" not "no!"

Tom Copeland - www.tomcopelandblog.com