By now, every small business owner is familiar with the Paycheck Protection Program (PPP) that was created by the CARES Act in March 2020. Of course, you also realize that the CARES Act was a congressional action intended to help small businesses weather the economic impact of COVID-19 shutdowns around the country. What you may not have thought about is how does a PPP loan impact the ability to buy or sell a business?
Read more“5 C’s of Credit” didn’t apply to PPP loans
If you are a small business owner, sole proprietor, 1099 Contractor, or even an employee of a small business, then the PPP loan program has been on your mind lately. To remind you, the Paycheck Protection Program was the $349 BILLION (then later another $310 BILLION) small business loan program funded by the CARES Act that allowed for small businesses to “borrow” up to 2 ½ months of their average payroll expenses. I emphasize “borrow” because the attractiveness of this program was not just easy availability of credit, but the opportunity to have most (if not all) of the loan forgiven.
Read more