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You may qualify for a Paycheck Protection Loan without knowing

Posted at 3:26 PM, Jul 08, 2020
and last updated 2020-07-08 22:40:34-04

SALT LAKE CITY — More than 50,000 Paycheck Protection Program loans worth more than five billion dollars helped Utah businesses pay their employees through the coronavirus pandemic, but business organizations say there are still thousands who qualify for money that remains available.

The Paycheck Protection Program is part of the federal CARES act created to address the financial fallout from Covid-19. Loans from the PPP are forgiven if the money is used primarily (60% or more) for payroll with the rest going for basic business expenses such as rent or mortgage interest.

"We still have lots of companies, especially sole proprietorships and independent contractors that haven't applied yet," said Miles Hansen, executive director of World Trade Center Utah.

Hansen says many of the Utahns who qualify are unaware of the fact, not realizing that their self-employed situation qualifies them for money.

He offers hair stylists and barbers as one example.

"You go into a barbershop and of course each of the people cutting hair there typically are independent contractors who do contract work with the owner of the salon," Hansen said.

Hansen says the application process is relatively simple. A sole proprietor would simple figure out their average monthly income from 2019 and multiply it by 2.5.

The state of Utah has a group of volunteers called the "Rapid Response Team" willing to answer questions if you think you might be eligible for a Paycheck Protection Program Loan. You can find a "Rapid Response Team" button when you scroll down on on the site.