Third round of PPP funding available this week
LEXINGTON, Ky. (WKYT) - As the coronavirus lingers on with record case numbers being recorded in some areas of the country, the federal government is rolling out the 3rd installment of the Payroll Protection Program. Independent financial planning advisor Josh Smith of Strategic Wealth Designers joined the newscast to talk about how this will bring additional relief to companies who have continued to be shut down or are operating at a significantly reduced capacity due to the restrictions in place. He says it should provide companies the ability to stay afloat, hopefully until the country turns the corner on the virus.
“What we are seeing with the third round of PPP is a survival situation,” Smith says. “This is not a situation where this boosts the economy, this is a situation where we are keeping businesses, many of them small businesses, afloat while the country tries to final a solution to the coronavirus. Hopefully, this is the last round of money needed.”
More than $280 billion has been set aside in the third round of the Payroll Protection Program. It can be given to those applying for the first time or it can be accessed for the second round of stimulus for businesses who already used money once. 35 billion has been set aside specifically for first-time borrowers with less than 500 employees to ensure the needs are met of small-businesses applying for the first time. Smith says the loans can be completely forgiven just like the originally designed PPP loans. Long term, his biggest concern is how the money that is necessary now, gets accounted for.
“Sooner than later we will have the virus behind us, the American taxpayer will be reminded of the enormous expense the pandemic cost us shortly thereafter,” Smith says. “Helping keep the economy and small businesses alive has been a top priority, it’s just tough that the increase in taxes we are likely to see on the backend will be some tough medicine to swallow for everyone.” To see additional stories surrounding business and economic news for the Lexington area, visit https://WKYT.com/MoneyMatters and if you have a question for Josh send an email to firstname.lastname@example.org.
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