Wait- So I Have to Pay My Employees While My Business is CLOSED? Why the PPP Loan Makes No Sense
Channel: Philadelphia Small Business Lawyer Sarah E. Holmes
Date: 2020-04-27

The Paycheck Protection Program sounds like a great idea for small business owners, in theory. However, upon delving into the details, most business owners discovery that PPP makes absolutely NO SENSE to businesses that have been forced closed by the government.

PPP offers a forgiveness aspect, that is, the loan can be forgiven, upon successfully submitting an application for forgiveness and meeting the the terms.  One of the terms is keeping pre-pandemic payroll levels the same for an 8 week period after receipt of the loan funds.  For business owners that are closed by mandate with workers that cannot perform work at home, this means you are paying your employees for no work to be performed.

Can you wait and use the PPP funds once the government allows you to open again?  It depends! 

Need help deciphering PPP? Feel free to reach out to our office:

Holmes Business Law PC
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Philadelphia, PA 19103
215-482-0285
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