U.S. Launches Paycheck Protection Program

Leaders

To ease the burden of employers and employees of small businesses impacted by the Coronavirus pandemic, the U.S. Congress has signed into law the CARES Act. The CARES Act includes an aide program called the Paycheck Protection Program (PPP) to provide low-interest loans to small businesses. The loan is designed to provide an incentive for small businesses to keep their workers on the payroll, and loans may potentially be forgiven if businesses follow set guidelines

Who Qualifies? Businesses with fewer than 500 employees including sole proprietorships, independent contractors, and self-employed persons that were in business on or before February 15, 2020.

How Much Can Businesses Receive? In short, up to $10 million. The amount a business qualifies for is based on 2.5 times its average monthly payroll.

What Can the Money Be Used For? The money is intended primarily for payroll for employees, but it can also be used for rent, mortgage obligations, utilities, or other debt obligations.

For more information, click here.

Source: U.S. Small Business Administration

Note: These lists are not intended to be all-inclusive

 



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