PPP provides relief for some small businesses, until the money ran dry

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PPP provides relief for some small businesses, until the money ran dry

Durango Harley-Davidson owner rehires its 12 employees
Slade Boyher, left, service manager, and Jim Kent, a technician, both with the Durango Harley-Davidson dealership, look over a 2011 Ultra Limited on Thursday that they are adding a sidecar to. Trevor Bird, owner of the dealership, was able to secure funding through the Paycheck Protection Program, which allowed him to keep his employees on the payroll without missing a check during the coronavirus pandemic response.

PPP provides relief for some small businesses, until the money ran dry

Slade Boyher, left, service manager, and Jim Kent, a technician, both with the Durango Harley-Davidson dealership, look over a 2011 Ultra Limited on Thursday that they are adding a sidecar to. Trevor Bird, owner of the dealership, was able to secure funding through the Paycheck Protection Program, which allowed him to keep his employees on the payroll without missing a check during the coronavirus pandemic response.
Paycheck Protection Program

To qualify, a small business, nonprofit, tribal business or veterans organization with fewer than 500 employees (there are some exceptions) must have been operating on Feb. 15.
All Paycheck Protection Program funds, $349 billion was provided, have been exhausted. However, Congress may reauthorize additional funding for PPP.
A business can borrow up to 2½ times its average monthly payroll costs – up to $10 million. Expect to provide proof of payroll costs for the past 12 months and be sure to track expenses after receiving the loan.
The amount spent during the eight weeks after issuance on payroll, mortgage interest, rent and utilities is eligible to be completely forgiven. Seventy-five percent of the loan must be spent on payroll for full forgiveness. In addition, the money is provided tax-free.
Interest rates are capped at 1% for amounts not forgiven.
The maximum is for a 10-year term.
Applicants cannot receive other federal COVID-19 aid for the same purpose, such as paying staff wages or sick leave, between Feb. 15 and Dec. 31.
If a business owner already has an Small Business Administration emergency loan, it can be refinanced into the paycheck loan.
Expect to be prepared to submit documentation of operating expenses, employment records or how payroll is calculated.
More details are posted on the SBA website.
The loan is from local banks not the SBA. Durango and Cortez lenders participating in the PPP program are:
Alpine Bank.Bank of Colorado.Bank of the San Juans.Dolores State Bank.Four Corners Community Bank.First National Bank of Cortez.First Southwest Bank.Vectra Bank.Wells Fargo Bank.

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