More than $350 billion has been set aside by the federal government for the Paycheck Protection Plan, which is intended to help small business owners meet their payrolls, pay for utilities, and cover the rent for a facility. There are situations where it is highly advisable to take advantage of this loan opportunity, and there are situations where it is less advisable to do so. Here are some of the reasons you may want to consider obtaining a loan through the Paycheck Protection Plan.
Your Work Can Be Done Remotely
If you have work that can be done remotely by your employees, then your business can continue while the coronavirus pandemic plays out. Some businesses have been obliged to simply shut down because most of the tasks associated with the business must be performed on-site, and in this case, temporary layoffs have been the order of the day.
You Expect the Lockdown to be Temporary
Virtually every state in the country is under a government-enforced lockdown, with only essential personnel allowed to report to work every day and conduct business. If you believe strongly that this will be a temporary situation, and you want to be ready to hit the ground running when the lockdown ends, then you should apply for payroll protection, to keep your business running in the interim.
Rehiring Employees Will Be Difficult
It makes more sense to keep your employees on staff and pay them at least something during the lockdown, rather than lay them all off, and have them seek employment elsewhere. Some businesses will find it very difficult to rehire employees who were laid off as a result of the coronavirus lockdown, and that will extend the difficulties of conducting business. It’s also true that it’s very expensive to pay for recruiting, onboarding and conducting various kinds of training for new people coming into your business.
Need a payroll protection loan?
You may qualify for a payroll protection loan with us, so we’d like to hear from you if it will benefit your company. Contact us at Gulf to Atlantic Commercial Capital, so we can discuss some options in this area.