KONK Life’s Guy deBoer, interviews George Ballenger, owner of ECO Tours about navigating the disaster loan application process
KONK Life interviews, George Ballenger. George is a local business owner here in Key West with Eco Tours, a discovery marine touring company offering ECO sailing and kayaking tours here in Key West and Keiger Key.
KONK Life: George you’re a small business owner here in Key West and you’ve been doing a lot of research regarding the disaster loan assistance programs not only in the State of Florida but also with the federal government, please talk about some of the programs you have been investigating with the Small Business Administration, (SBA).
George: Well when I started I had only one question, but that quickly became 6, 12 to finally about 60 questions. What I discovered is there are there’s a lot of opportunities for assistance out there. There are a lot of economic opportunities out there like financial disaster injury loans, (EDIL) and there are some Florida State loans available also like a business bridge loan. But what I think is the best is the Payroll Protection Program offered bt the (SBA). This loan is specifically for small business owners. Small business owners with employee payroll should be looking at first as the payroll Protection Program first.
KONK Life: What makes this program so special?
George Ballenger: For starters, it’s 100% forgivable. So let’s call it a grant if 75% of the (PPP) money is spent on payroll it does not have to be re-paid. You can then spend the remaining funds on rents or mortgage interest and even utilities. It’s a program designed to cover 8 weeks of payroll including money to pay the business owner or officer of a small business. That’s right, you get to pay yourself, (business owner), over that those eight weeks.
KONK Life: How does someone apply for this job Paycheck Protection Program (PPP), with the (SBA)?
George Ballenger: Right now is a good time to start. Officially it started Friday, April 3, 2020, but they had some website issues or problems initially. You can go now on the SBA website, www.sba.gov where you will find the links to all of the (SBA) loan programs like the (PPP) loan /grant application. If you have a relationship with a bank you should get in touch with them. The (SBA) programs are guaranteed by the federal government but the loan applications and funding is processed through normal banking channels. That’s where the loans are originated. Just so everyone knows the program PPP is more for small businesses and sole proprietorships. If you’re independent contractor or self-employed the first day you can apply would be on the 10th April 10th. The (PPP) is open through June 30th. For filing, I will be using my 2019 tax form to determine the loan amount. But if you don’t have that you are welcome to dial back to your 2018 IRS filing.
KONK Life: The (PPP), payroll Protection Program, you’ve have said it’s almost like a grant if you use 75% of the funds for employee payroll and even for paying yourself as the business owner.
George Ballenger: That’s right, tt’s designed to help the small business owner. You can apply for this loan and if you spend 75% of the money on the payroll you will not have to repay the grant/loan.
You need to understand though, if you do not spend at least 75% on payroll then you have obligated to pay back the monies. The interest rate is 1% and after a minimum of a 6-month deferment possibly up to a year, then you’ve got up to two years to pay back. What I’m advising to do is to is to put at least 75% of this into your payroll and then you don’t have to pay anything back.
KONK Life: Thank you for sharing your research regarding these complicated financial situations that we are all finding ourselfs in. Again, thank you for explaining in simple terms on how to apply for the (PPP) Payroll Protection Program with the SBA.
George Ballenger: We’re all in this together, I hope this information can help my fellow small business owners. Everyone be safe.
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