These are certainly “Trying Times”. Most of us have never experienced anything like it before. When everything is shut down, not only locally, but globally, running a small business is very difficult to do. Thankfully, our federal government is stepping up to the plate and pitching us a ball that at least gives our small businesses a fighting chance to hit.
My business, Caps Funding, LLC is a small business in the accounts receivable factoring industry. My business normally tries to get you to sell me your unpaid invoices for a fair discounted cash price. I collect the receivables and pay you the balance, less a small fee that my business keeps for advancing your business the cash. It is a win-win transaction.
Normally, I don’t encourage businesses to take out loans. Loans normally add unwanted debt to a new, growing business. Today, however, I’m going to encourage you and your business to take advantage of a new “loan” that our government is offering nationally to all small businesses. It is called the Paycheck Protection Program.
The PPP Is a Slow Pitch That You Have Got to Swing at & Possibly Hit
The PPP is a federal government loan program that is being administered by the Small Business Administration. The doors opened on this loan program April 3 and will remain open until June 30th. Congress initially approved 350 billion dollars for this program and another 250 billion dollars are likely to be approved.
Any small business with less than 500 employees is qualified to apply. This includes businesses with a sole proprietor, independent contractors, and self-employed. You can own more than 1 location.
The funds are to be used to pay rent, interest on mortgages, payroll costs, and utilities. The federal governments strategy is that you will maintain the number of employees that you had before the coronavirus epidemic or rehire them. The Federal government is assuming that you will at least maintain their rate of pay.
The Government Will GIVE You This Money
Assuming that 75% of the loan that the government loans you is used to pay and maintain your employees, the government will GIVE you this money. Your obligation to pay the loan back is forgiven.
There are no fees from the bank or the government for applying. If 75% of the loan is not used for payroll, then the loan payable in 2 years at a 1% interest rate.
Here is a short 3-minute video about the PPP that I found online. This particular video is made by a bank that wants your business. I am not promoting this bank… I am showing you this video only to give you some more information. Watch:
Caps Funding is NOT in the loan business. I am encouraging your business to consider this “loan” only because of the coronavirus and I know how difficult these business times are right now. After we get through these tough business times and your business starts to grow again, I hope that you will keep my business, Caps Funding, LLC, in mind. Accounts receivable factoring is a really good way to finance a growing business without assuming debt. If you have questions, about factoring or this Payroll Protection Plan, please give me, Charles, a telephone call at (803) 429-3686. Or, email me.