Making Payroll, Rehiring, and Paying Yourself During the Covid-19 Pandemic
Small business owners across the country have questions about government lending programs aimed at keeping employees working— here are some answers.
If, like my septuagenarian parents, you run or work for one of the one in four small businesses in America that had to close temporarily because of the Covid-19 pandemic, you’re probably scrambling to understand your options to keep paying your employees, among other concerns. The Trump administration’s Paycheck Protection Program (PPP), a $349 billion rescue package, is meant to help tide you over for a few months. It’s available for a range of small businesses and nonprofits, from those with hundreds of employees (up to 500 employees) to self-employed individuals.
PPP, which launched on Friday, April 3, and is available through June 30, already is getting mixed reviews from business owners who tried to apply. Some banks are imposing unexpected limitations. The administration’s delays in providing guidance meant some lenders weren’t ready to process applications on April 3. The sheer volume of applications is another concern—will lenders be able to process them in a timely fashion? (On April 6, the Small Business Administration’s loan processing platform crashed, and is now up and running again, Bloomberg News reported.)