May 8, 2020
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Would I lie to you, baby?
Alright, we all read the news about the Department of Justice going after businesses who may have fraudulently acquired PPP loans. Many a legit SMB may have since wondered, “Did I accidentally defraud the government?”
The answer, in most cases, is no. The PPP loan was created to help small businesses who’ve been impacted by COVID-19. Unless you intentionally misled the authorities in your application or are a large business with ready access to other funds, you’re good. If you’re still worried, here’s our guide to avoid being seen as a federal fraudster.
Forgiven but not forgotten
If your business managed to snag a PPP loan, you probably have a million questions about what to do next. Like, “How much of my staff do I actually need to rehire?” “What’s the optimal amount to pay them?” and “How do I track my expenses?” (Hint for that last one: Open a separate bank account.)
Here’s a comprehensive step-by-step guide on what to do once you’ve gotten a PPP loan. Pro tips: Print this guide out and mark your calendar with the day that your PPP loan period ends.
Finally, a word on work-share options
ICYMI, work-sharing programs can be a helpful resource for businesses impacted by COVID-19. They allow employers to reduce the hours an employee works and use unemployment compensation to make up the difference in wages. It can be a great alternative to layoffs since it allows employers to retain a trained workforce while also maintaining their team’s economic stability. Many states have work-share programs, and are actively promoting them in light of COVID-19. Check out our database of work-share programs here.
Our top relief options for the week:
- Spanx The Red Backpack Fund
- At least 1,000 grants of $5,000 each to female entrepreneurs in the U.S. to help support the long-term recovery of those impacted by the COVID-19 crisis.
- Deadline: May 11, 2020
- More Information
- Amber Grant
- The Amber Grant is a $4000 grant awarded to qualifying female entrepreneurs each month. At the end of the year, monthly grant recipients will have the opportunity to win an additional $2,500 grant.
- Deadline: May 31, 2020
- More Information
- Hello Alice
- Hello Alice is offering $10,000 grants, distributed immediately to small business owners impacted by coronavirus. In addition to funding, grant recipients will receive ongoing support from the Hello Alice community.
- More Information
On our radar
- Navigating PPP Loan Forgiveness [Webinar] (Thursday, May 14: Gusto & Bench)
- Low-income and younger workers bear brunt of coronavirus-related layoffs (USA Today)
- What if you don’t want to go back to the office? (New York Times)
Want more small business news and resources? Check out past editions in our archive.
