The United States Senate has just passed the newly updated Paycheck Protection Plan, and it is set to go before President Trump to be signed into effect.
The newest updates are significantly beneficial to many businesses in America. As you may know, the pandemic and, therefore quarantine, did not happen as our leaders expected. With quarantine lasting much longer than some would expect, many cleaning businesses have been out of commission.
The previous Paycheck Protection Plan was great at the beginning, but as the lock-downs prolonged it was obvious many businesses could not take advantage of the Program. States like California or Michigan wouldn’t even open until it was too late to use their resources. And, if they use those resources, they have a very limited amount of time to gain the necessary employees needed so they don’t get slammed with bills to pay back the loans.
However, the update has greatly improved the already helpful plan. For one, the amount of cash available for general use has been increased. Originally, 75% of cash received had to go to payroll. Now, it has been set to 60% allowing a whopping 40% to go to anything else your cleaning business may need.
Also, the number of weeks in which the loan has to be paid back has been set at 24 weeks rather than the somewhat meager 8. However, in classic governmental fashion, what was passed is not crystal clear. What we don’t know yet is when you have to be back at full staff. Originally, it was set on June 30th. However, with the number of weeks being extended, it is unclear when the deadline will be set. It very well could be variable based on when you received your loan, or could be one standard date. Even those who passed the law don’t know what it will be.
If you haven’t checked out our Facebook page, our live stream talks about running a cleaning business during Corona. We talk about topics like these almost daily.
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