Once your PPP loan clears, your salon or spa might be eligible to remove the debt entirely. Any small business can apply for loan forgiveness if it spends loan proceeds in full, but there are some fine print exceptions to keep in mind:
Your business must maintain all employee and compensation levels; in other words, there can be no furloughs or pay cuts for your stylists and assistants
All loan proceeds must go towards payroll costs and eligible expenses as noted in your terms
At least 60% of loan proceeds must go towards payroll.
One thing to note is that beauty professionals looking for loan forgiveness must apply within ten months of the last loan coverage date. Doing so will freeze repayments until federal funding is processed. If you do not, payments will begin to arrive with interest.
Supporting a business during a pandemic is no easy feat, especially one with specific needs like the beauty industry. Thankfully, resources like the PPP can help beauty professionals make ends meet. For more information, please visit the SBA frequently asked questions page.
Additionally, if you are looking for other ways to help support your business and tackle challenges, Boulevard can be a valuable resource. Feel free to reach out to our team so we can discuss the different ways in which we can help with your specific needs.