Surviving in the brutal situation created by the Coronavirus Pandemic may have been tricky for many startups and small businesses. It also has been challenging for small businesses to keep their finances flowing effectively during the lockdown period. And marketing agencies are no exception. If you are running a marketing agency and got hit by such a bad financial situation, PPP loan forgiveness can assist you to keep your business running.
What is PPP (Paycheck Protection Program) Loan Forgiveness?
Paycheck Protection Program (PPP) is a loan program designed by the local government to provide small businesses a direct incentive so they can keep their employees on the payroll. It is a part of $350 billion in aid the U.S. Congress assigned for SMBs in its recent stimulus bill. The core purpose of this loan program is to keep small businesses and companies afloat during the COVID-19 pandemic and to make sure workers are getting paid as well. Depending on what a business does with a PPP loan during the 8 or 24 weeks after receiving the loan amount, the business may be able to qualify for partial or full loan forgiveness according to the outlined terms.
Understanding PPP Loan Eligibility for Marketing Agencies
To be eligible for the paycheck protection program loan, marketing agencies are required to have been running their operations before 15 February 2020. Along with that, if you have employees in the business who are working on creating and optimizing search engine marketing campaigns manually or using automation tools, or managing social media accounts on the behalf of your clients, you are likely to meet the eligibility criteria for a PPP loan. You should also have less than 500 employees at your marketing agency to be considered as a small business and get your loan application approved. If you are about to taking advantage of a PPP loan for marketing agencies, you will be allowed to use finds for:
- Payroll (retirement benefits, health insurance premium, and sick leaves are included)
- Utility Bills
- Other mortgage or debt interest creating before 15 February 2020
How to Apply for PPP Loan for Marketing Agencies?
If you are ready to apply for a paycheck protection program loan for your marketing agency, you will need to find and contact a financial institution or bank affiliated with the SBA (small business administration). They may also require you to attach a copy of your 2019 tax return and payroll expenses with the application to check your eligibility for the program. Being the owner of a marketing agency that has the ability to pay rent and employee salaries who are handling marketing campaigns and activities for clients is highly useful when it comes to applying for a loan amount from the paycheck protection program.
PPP Loan Forgiveness for Marketing Agencies
Money borrowed by a marketing agency as a PPP loan can be forgiven by the government if spent on eligible expenses during the period covered. If you want the loan amount to be fully forgiven, you should spend at least 60% of the entire loan amount on payroll costs. PPP loan forgiveness can be beneficial for marketing agencies if they spend funds on utilities and employee salaries to create and run several marketing activities like PPC ads, social media marketing or SEO, etc. for clients. When you successfully apply for the PPP loan forgiveness criteria, you would not have to worry about paying the funds back to authorities.
If you are a marketing agency and seeking financial assistance via PPP loan forgiveness, you are advised to avail of services of small business marketing company accountants or professionals. They are experts to help you go through the process conveniently and make the entire process smooth. Getting the help of accountants would be great to complete the application process, determining the eligibility, and submitting the PPP loan forgiveness application effectively.