In these tumultuous times, the Bankcard Brokers team is doing our best to share what we know to help you weather the storm. Our focus is always on providing the tools and information to make your business better and more profitable. This week there have been 2 significant developments for businesses.
The Payroll Protection Program.
Many businesses are eligible for the new Government Payroll Protection Program. However, we’ve found that many business owners do not know that they are eligible. This plan provides for employee pay and insurance, business mortgages and rents, and independent contractors’ compensation. This program is still evolving, but starting today business owners are able to complete a simple application form (the government says takes 8 minutes). This program entitles your business to a 100% forgivable loan to cover ongoing business and employee costs. The program aims to cover 10 weeks of your average payroll, contractor, mortgage, and health insurance costs. Late on 4/2/2020, the SBA released a full set of guidelines here: https://home.treasury.gov/system/files/136/PPP–IFRN%20FINAL.pdf
Businesses must submit an application through an SBA accredited lender, like your local bank. However, many institutions are creating online submission portals for their merchants. These loans are offered on a first-come, first-serve basis. Now is the time to get started to get your share of the $349 Billion dollars that have been earmarked for this program.
Card Brand Interchange Adjustments.
On another note, the card brands have postponed their bi-annual review and adjustment of interchange rates and billing schemes. This year will bring some fairly significant changes, but Card Associations have announced they will delay until July 17, 2020, instead of April. American Express will delay the changes to their assessment fee and their Inbound Fee (International) until October 2020. Please note that Interchange Adjustments are NOT processor specific but rather levied industry-wide by the card brands themselves.
If you are wondering how these changes could affect your business – give us a call. We’d be happy to review your account.
Has your business has been affected? Do you need more flexible ways to accept payments or additional tools to take your business mobile? Let us know. Our team is here for you! We’re working from the security of our homes and we will continue to look out for ways to make your business better.
If you want more details on how this affects your business or what you can do to save money on your merchant services CONTACT US!