The world is suffering due to the physical, mental and financial problems being faced during the cornavirus/Covid 19 outbreak. The food truck industry is suffering too. We have been receiving numerous messages over the last few weeks and have been reaching out to professionals to get you some answers. The three most asked questions tend to be about about the Paycheck Protection Program (PPP).
The Paycheck Protection Program (PPP) application period has opened and will remain open until June 30, 2020, or until funds run out. The PPP is a $349 billion government stimulus available to certain small businesses. As an independent food truck owner, you may be eligible for a forgivable loan of 2.5 times your monthly payroll up to $10 million.
The Paycheck Protection Program And The Mobile Food Industry
Thousands of food truck vendors have been and will continue to apply for the forgivable loans provided by the Paycheck Protection Program (PPP). Here are three of the most asked questions we’ve received.
What can food truck owners use the PPP loan funds for?
Loans fund may only be used to pay eligible expenses. These include payroll costs, utilities, and rent during the 8-week period following the loan origination date, which has been defined as the date you receive funding.
Can an owner’s draw be included as payroll costs?
The PPP doesn’t allow you to submit owner draws to be considered a part of payroll costs. It does provide vendors the chance to use previous earnings when calculating eligible loan amounts.
What will happen if I can’t reopen my food truck during the 8-week forgiveness period?
The forgiveness amount is not based upon whether or not you are open. It only applies to how much you have spent on eligible items. Again, these items include payroll costs, rent, and utilities during the 8-week period.
The Bottom Line
Times are difficult for everyone. The Paycheck Protection Program is in place to help with some of the financial burden caused by this pandemic in the United States. If you can get through the process, PPP will assist you by helping retain your staff members and get your truck back on the road as various restrictions ease up.