Day: June 5, 2020

5 Strategies for Avoiding PPP Legal Blunders

6 min read

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The CARES Act was a landmark, $2 trillion piece of legislation that not only provided every American with a $1,200 stimulus check and an extra $600 a week in unemployment benefits, but also put aside money for the Small Business Administration (SBA) to cover the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL). This program provides forgivable, low-interest loans to small businesses that qualify and has already been a lifesaver for many businesses that have been forced to shut their doors during the quarantine.

But as with all good things, there will always be those who take advantage, which means that these loans come with strict standards and regulations for those applying to and receiving federal funds. Although most business owners would do anything to avoid an accusation of fraud, it can be tricky to navigate this complex area of finance and legislation. Mistakes can happen. To avoid any issues cropping up in the future, here are five strategies to keep your business safe from PPP loan blunders.

1. Keep careful records regarding your PPP loan spending

Don’t wait until your business is large to keep meticulous records of your spending, especially when it comes to this type of loan. Because of

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