If you haven’t taken advantage of the PPP, you may be missing out on an important opportunity. A recent study from Lantern Credit showed that business expansion is continuing in distressed industries.
What is PPP?
During the height of 2020’s coronavirus pandemic, the U.S Congress passed legislation to create the Paycheck Protection Program (PPP). Championed by representatives Marco Rubio and Susan Collins, this program was designed to protect small businesses facing distress and dissolution. Through subsidized loans, the PPP helped ameliorate the damages caused by the coronavirus pandemic.
Without the PPP, it is likely that the unemployment and social problems in the United States of America would have proven serious and intractable and it could have turned worse. Thanks to the PPP, this nation was spared an even worse economic downturn. Naturally, a larger American economic crisis would have had dire effects on the global economy.
How You Can Use PPP For Business Growth
Even in the midst of the economic downturns, sensible businesses continue to expand their operations. Paycheck Protection Program loans are mainly meant for payroll. However, you can use these funds for accounting services, repairing property damage, and purchasing software. Businesses can use these funds to take care of rent, utilities, and equipment costs.
It is also permissible to use PPP funds to pay for HR functions, cloud computing, and PPE. PPP loans can free up funds you can then use to expand your business. If you expand early, you’ll be in a perfect position to take advantage when the pandemic-related downturn ends.
Who Is Eligible For A PPP Loan?
Virtually every type of suffering small business is eligible for a PPP loan. If you experienced a quarter where your gross income was 25% below your receipts during the same quarter in 2019, you are probably eligible. If your business employs less than 300 people, this program is designed to help you continue paying your employees & that benefits small businesses at a very good level.
Since the PPP was first unveiled, the government has refined this program several times. These days, the government is receiving accolades for administering the program in an equitable fashion. Though nothing is for sure, the US government is likely to continue providing some type of business assistance after the PPP expires. So these are the important things we should keep in mind when applying for PPP loans by small businesses.
Expansion in the Face of Adversity
Lantern by SoFi is one company that has provided expert analysis on the pandemic economy. According to the experts at Lantern by SoFi, “The future for travel and transportation is uncertain, as many people are limiting travel at present.” However, most other industries should gradually recover from the dark times caused by the global pandemic.
The PPP has been active for close to a year now. PPP data shows that a surprising number of small businesses have continued expanding. During difficult times, it is easy to fall in a rut and simply focus on surviving from day to day. However, it’s never a good idea to forget about long-term goals. Even if you have faced challenges in recent months, you shouldn’t give up on your ambitions and dreams.
One of the best ways to expand your business is to invest in marketing campaigns. In particular, digital marketing has the potential to help you reach new demographics.
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