DRDA’s President, Mr. Douglas A. Dickey, CPA, CEPA, was spotlighted this week in Houston’s news publication “Houston Business Journal.” Mr. Dickey covered the current economic crisis that most small businesses in the U.S. have experienced due to the Covid-19 Pandemic and how the Small Business Administration’s Paycheck Protection Program has currently aided more than 4 million small businesses from closing their doors.
The SBA’s PPP program originally set out for small businesses to utilize loans within an eight week span, the timeframe that the U.S. government officials expected the pandemic t last. However, the pandemic has extended further than anticipated. “This PPP was designed to survive for a 90-day period of time — 60 days of stay-at home, 30 days to ramp back up,” Mr. Dickey said. “That doesn’t seem to be happening, so now what do we do?”
In order to extend economic relief to small business, Congress passed the Paycheck Protection Program Flexibility Act in June. Businesses are now permitted to extend the use of the funds received from extended from eight to 24 weeks, and utilize 40% of the loan to cover non-payroll expenses. This is particularly helpful for business that remain closed. “If your business is completely shut down and you’re not making any money, you’re going to have some rent costs, you’re going to continue to have note payments,” explained Mr. Dickey. “You’ve got ongoing costs, but you’ve got no income coming in.”