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A recent report shows that major American companies such as McDonalds, Subway, Dunkin, Ford and General Motors were able to secure thousands of PPP loans intended for small businesses.
According to the Washington Post: “4,278 Subways, 2,445 Dunkin’s and 2,217 McDonald’s” were able to receive PPP disaster relief funds, while “1,478 General Motors locations and 1,115 Ford locations” were able to get these small business disaster relief funds.
Putting things into perspective: “In total, SBA identified 75,746 franchise businesses that received loans, amounting to 1.5 percent of the 5.2 million loans issued between April 3 and Aug. 8 for a total of $15.6 billion.”
Inspire Brands spokesman Christopher Fuller explained: “The program was designed to help independently owned and operated restaurants, whether or not they are affiliated with a broader franchise system. The funds from the program helped restaurants stay economically viable and keep people employed during an incredibly difficult time.
While I’m glad that these restaurants were able to receive PPP loans to keep their doors open, I also hope that the same resources are available to smaller businesses without brand recognition.
Meanwhile, the great state of Massachusetts has announced more funding to assist local small businesses with free grant money to help them keep doors open and employees paid.
Governor Charlie Baker announced $45 million in free small business grants through their Small Business Grant Program, administered by Mass Growth Capital Corporation.
Eligible small businesses can receive upwards of $75,000, or three months of expenses, payroll, rent, etc.
So far to date, Massachusetts has awarded $280 million in direct financial support to more than 5,800 small businesses struggling with finances during these crazy times.
I’m glad to see Massachusetts stepping up to the plate and supporting their local companies, and I hope that all the other states take notice and start following suit.
Finally, I thought it would be interesting to break down some tips and tricks for understanding and filing an application for a PPP loan.
The Journal of Accountancy lists some very informative tips, to help you best understand and receive your PPP forgivable loan from the SBA.
It’s important to provide ample documentation, with Kari Hipsak, CPA, CGMA, a senior manager with the Association of International Certified Professional Accountants, explaining: “Supporting documentation for the average monthly payroll calculation used to calculate the maximum loan amount can be obtained to support those amounts.”
She also suggests being aware of the new terms of PPP loans, stating: “You can’t go back and make adjustments to the loan if it’s done. If you haven’t submitted your PPP forgiveness application, there’s an opportunity to go back and use those additional expenditures because the act did make them retroactively available.”
She closed by alerting loan claimants that the SBA could be more critical of this round of PPP loans to combat fraud, so make sure to tell the truth and only claim funds that you are legally entitled to.
If you are interested in learning about a Paycheck Protection Program loan, or are looking to receive your second PPP loan, click on the link below and get your application in today.
Don’t miss out on the chance to receive these amazing, forgivable disaster relief funds that are designed to help you and your small business get through these difficult times.
Click on the link below, submit all of your supporting documents, and you could get a loan from the SBA that can be fully forgiven if spent appropriately.
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