A week ago, small businesses could start applying for something called the Paycheck Protection Program, a forgivable loan through the Small Business Administration. Erik Riekenberg, Owner of Epik Weddings, applied the very first day it was available.
"We've applied for the Paycheck Protection Program through sba.gov," he said. "We already have a banking relationship with Bank of America, so we filled out the form last Friday. We received information that Sunday; they connected us with a document upload program. So things are moving, hopefully in a great way. They're opening up to more local banks. We already had a relationship with Bank of America, and what we understood is that banks are working with their customers first and foremost. So if you have a relationship with them, whether its a credit card or other type of loan, that's where you are going to want to start if you have an option to get a loan through that bank."
The program is a way for small businesses to pay their employees during the pandemic. If they use the money to cover certain approved costs, like payroll, mortgage interest, rent and utilities, and continue to pay their employees, the loan turns into a grant after two months.
"It's 100% forgiven; it's gift," Riekenberg said. "There's some other stipulations that come in there as far as, if you take advantage of the Paycheck Protection Program, you're not eligible for some tax write-offs and other things, but it covers your state and federal taxes and wages. It's a huge gift to be able to help so the floor doesn't fall out of our economy."
The effect the pandemic will have on this years wedding season is still unclear.
"May is going to have a pretty big impact, but if this bleeds into June and beyond, it's going to be super detrimental for a lot of the couples and wedding vendors in the area," Riekenberg said.
That's why he applied for the program as soon as possible.
"Both my wife and I are employees, so we are able to pay ourselves and keep ourselves afloat during this time," he said. "That way we can get though this and still be able to service all of our couples."
He says they're working with clients to come up with alternate plans in case the pandemic will affect their chosen date, and everyone is doing their best to make sure the current situation won't prevent couples from saying I do.
"Don't cancel your wedding," Riekenberg said. "Put a stop on anything printed, like invitations, if you're unsure, but then reach out to us. We always tell our couples, you're not on an island, you have so much support, this is going to be the best day of your life!"
For more information, visit: https://www.sba.gov/
