The Paycheck Protection Program (PPP) officially closed to new applications at the end of May after doling out billions in forgivable loans to needy small businesses around the country. Most of these businesses used the money to help pay their employees and other operating expenses while they navigated the unprecedented economic recession caused by the pandemic and related government shutdowns.
But PPP is a forgivable loan and now many small-business owners have started the process of applying for forgiveness with their lenders. But wait … should they?
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Maybe. But there’s another option that should be considered. Instead of designating its payroll costs to get forgiveness on its loan, a small-business owner can instead use those same funds to apply for another stimulus benefit: the Employee Retention Tax Credit