The Treasury Department rolled out a program for small business loans, however, there has recently been minor changes to the original program. The original guidelines for the small business loans required a rehiring of staff and any additional loan amount be used on rent or utilities. The problem with this original guideline is that many small businesses who applied for the federal loans remain closed. Also, many employees turned to unemployment options prior to their employer receiving the loans and found it more beneficial to continue getting the unemployment than to go back to work. In recognition of these small business challenges, new loan guidelines were issued in order to convert the loans to grants for struggling businesses.
In addition to those changes, government officials and lawmakers are considering giving businesses more flexibility in the grants. The government extended the loan spending time to 8 weeks, meaning that the loan can be taken out to cover business costs for 2 months opposed to original shorter time frames for spending the approved loan amounts. However, to some businesses such as restaurants, and even hair salons, these guidelines are not easy to come by. These trying times have people having a hard time rehiring their employees due to an uncertainty in future business success and the ability of a loan to keep the business afloat.
Is your business struggling due to coronavirus? Do you have questions about your PPP loan application or forgiveness? Call our office at 816-524-4949 or visit our website at hoorfarlaw.com to schedule a consultation today.