Overall, people in Connecticut applaud the hastily put together Paycheck Protection Program (PPP) that’s part of the $2 trillion federal stimulus to help out during the coronavirus pandemic.
However, the small business owners that this is trying to protect have been wondering about a lot of things, including if they even qualify.
Jennifer Lovett, owner of Crystal Financial Insurance and Education in South Windsor, is not sure if she'll apply for PPP funding.
The health insurance broker said she’s not sure she’ll need it.
“Currently because I work on commissions, we’re not gonna know where we stand until the next commission statements come in.”
The PPP is run by the U.S. Small Business Administration, or SBA, which has application forms on its website.
The PPP loans have to be approved by a bank.
The Connecticut SBA said even if a small business gets rejected by its own bank, there are options. Interim director Mark Hayward said there is a list of SBA approved lenders on their website.
The main goal of the PPP loans is to keep people on the job, and the low-interest loans could be forgiven…if all employees are kept on the payroll eight weeks.
At least 75% of the loan must be used for wages. Up to 25% of the loan can be used for rent, utilities, and mortgage interest.
“Keep a log, keep those bills. And when you come back in and ask for loan forgiveness, it’s not going to be a difficult process I promise you that," Hayward said.
The SBA also said if an employee gets hired back because of a PPP loan, it’s on both the small business, and the employee, to halt the unemployment benefits. “You need to tell the department of labor I’ve gone back to work, and the employer will do that as well”