What to Do if You Can't Use Your Entire PPP Loan
Though the COVID-19 crisis has been financially devastating to the U.S. economy on a whole -- hence our current recession -- small businesses have been among the hardest hit. It's estimated that more than 100,000 small businesses have already closed their doors in the course of the pandemic, and many more risk a similar fate if further lockdowns are imposed.
Thankfully, there's been relief available. In April, the Paycheck Protection Program (PPP) was rolled out, offering small businesses roughly $350 billion in forgivable loans. Though that initial round of funding ran out in just weeks, another $310 billion was made available in a second round that allowed more companies to get a piece of that pie. All told, PPP loans have saved millions of jobs and prevented recent record unemployment numbers from climbing even higher.
The problem, though, is that many businesses have exhausted their PPP loans and are struggling in the absence of additional funding. But what if your business received a PPP loan and you think you won't be able to use all of it up? It's a good problem to have in theory, except for one thing: It puts you at risk of not having that loan forgiven.
Source Fool.com
