Recently, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Part of this law allows small businesses to take out loans to rehire workers they’ve let go due to declining finances and to keep those on their payrolls paid. Because Plumbing Concepts is also a small business, we want to share this information with those who work for other small companies to help keep our local economy going.
What Part of the CARES Act Allows for Rehiring Workers?
The Paycheck Protection Program (PPP) is the part of the CARES Act that will require small businesses to quickly rehire anyone they have let go to qualify for loan forgiveness. When a small business owner applies for this loan, they can get up to 250% of the amount they would pay for salaries for their workers between February 15 and June 30, 2020.
When a small business owner takes advantage of this program, they have to provide a count of full-time workers. The company needs to maintain this number throughout the period, or the amount of the loan forgiven will shrink.
The loan application period began on April 3, 2020. If you lost your job, contact your former employer and encourage him or her to apply for the PPP and to rehire you. The sooner the loan application goes through the system, the more likely the small business owner will get the funds needed. A limit on total loans through this program is $349,000,000,000.
Support Small Businesses
Programs such as the PPP help small businesses to retain their workforces. With fewer people losing their jobs from the economic recession, the impact on the country’s total economy will lessen. Tell any small business owners you know about this program. Spreading information about assistance programs increases the chances that those who need them will take advantage.
Aside from information sharing, don’t forget to support your local small businesses financially during this time and after recovery from the economic recession.
At Plumbing Concepts, we want to thank you for your continued support of our small business and others in our community. Let us know if we can help you with any plumbing issues you may have by calling our 24/7 phone number at (951) 520-8590.