The Paycheck Protection Program (PPP) was created as part of the $2 trillion stimulus package known as the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. This program provides $349,000,000 in federally backed loans to businesses to meet financial operational costs like payroll, mortgage interest payments, rent, and utility payments as an incentive to encourage businesses to retain employees during this pandemic.
Starting April 3, 2020, small businesses can begin applying for the Paycheck Protection Program (PPP) authorized under the CARES Act of 2020 to help combat the financial effects of the COVID-19 virus. The Program provides funds to pay up to eight (8) weeks of payroll costs including benefits. Funds can also be partially used to pay interest on mortgages, rent and utilities and can be FULLY FORGIVEN if used for those purposes. The amount any small business is eligible to borrow is 250% of their average monthly payroll expenses, up to a maximum of $10 million.
NOTE: Independent contractors and self-employed individuals can start applying on April 10, 2020.
There are also programs available to provide low-interest debt relief loans to small businesses and independent contractors or self-employed individuals. For the loans to be forgiven, there are important rules and guideline that must be followed. For FREE assistance preparing your application and to discuss the rules and limitations, please contact our office to schedule a phone or video conference.