PPP Loans may run out prior to May deadline
LANSING, Mich. (WILX) - Funds for a paycheck protection program loan also known as a ‘PPP loan’ may run out before the May deadline. The Michigan Non Profit Association is urging small businesses and non-profits to apply before it’s too late.
As of April 5, the small business administration approved nearly 4 million PPP loans, that’s over 150 billion dollars’ worth; However there are certain eligibility requirements to receive this type of loan.
“Non-profits have to have employees in order to be eligible for the paycheck protection program,” Vice President of Michigan Non-Profit Association, Kelley Kuhn said.
Both non-profits and small businesses need to show that they have a 25% reduction in revenue in at least one quarter during a fiscal year in order to qualify for this second round of PPP loans.
“The maximum benefit a non-profit can receive is two-in-a-half times their average monthly payroll,” Kuhn said.
They would receive cash in the form of a loan in order to pay their staff, and if used the proper way this loan is forgivable, meaning they will not need to pay it back.
One small business owner who applied for the PPP loan says he doesn’t know how he would operate without it.
“It lets us keep the doors open kind of carefree I don’t want to say carefree but to secure this money and to save it for keeping our staff employed was key for all of us that was our biggest issue,” Co-Owner of Arts Pup, Greg Sinicropi said.
Sinicropi told News 10 that payroll is one of their biggest expenses, even more than their mortgage, and he wants to do everything he can to keep his staff.
“We just don’t know how long this is going to go for, that’s the thing right when your think you’re out of the woods and the vaccines are flying and the weathers good you see multiple places closed all over,” Sinicropi said.
The deadline for small businesses and non-profits to apply for the PPP loan is May 31.
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