If your Amazon business has W2 employees, the PPP loan may be a tangible resource for you.
A long time Entourage client reached out to us to share this amazing resource to help sellers get government assistance with the Paycheck Protection Program (PPP).
What is the Paycheck Protection Program (PPP)?
The PPP is a government loan that helps businesses fund payroll costs.
Of particular note is that, if you meet certain employee retention criteria, the loan may be forgiven (completely). That means you keep the money and don’t pay it back.
Let’s repeat that: You keep the money and don’t pay it back.
Amazon sellers who meet the proper criteria should apply right away. The process only takes about 15 minutes.
It’s important to apply ASAP as there is a limit to the amount of loans that can be approved. Once the money is gone, the opportunity is lost.
Amazon sellers may receive 2.5 times the amount they pay in monthly payroll.
For example, if you have $10k/mo in payroll expenses, you could be approved for up to $25k.
Then, if you follow the very specific guidelines and continue to meet all of the criteria, you may be able to have the entire loan forgiven.
Here are three easy steps to follow to make sure you get any loan forgiveness you qualify for.
Your lender can provide you with either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a lender equivalent.
The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your Lender can provide further guidance on how to submit the application.
Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
Complete your loan forgiveness application and submit it to your lender with the required supporting documents and follow up with your Lender to submit additional documentation as requested.
Remember to always communicate with your lender throughout the process in a timely manner. If SBA undertakes a loan review of your loan, your lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.
For more detailed questions and answers around specific application requirements, visit the U.S. Treasury Department’s PPP Forgiveness FAQs and updated guidance.
The link found in this article is a referral link to Smartbiz, who is facilitating the process. Smartbiz is being run by a longtime Entourage client, and we have personally applied for the PPP loan through their system to ensure that everything is 100% safe, legitimate, and clear. Any questions should be directed to them.
A portion of our commission will go to the Days of Nuggets foundation, which works to end child trafficking.
Please keep us posted on if you get approved. We’re rooting for you!