April 3, 2020 10:38 AM
Paycheck Protection Program
Paycheck Protection Program Applications open Friday, April 3.
We wanted to make sure you were aware of the Paycheck Protection Program, a new funding opportunity that the Small Business Administration is offering as part of the The Coronavirus Aid, Relief, and Economic Security (CARES) Act. Applications will be accepted by participating local banks starting tomorrow (April 3, 2020). $347 billion is available nationally, but the expectation is that demand will exceed that amount, and this is a first come first served program.
DETAILS FROM SBA
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.” To find our more on this program please see the SBA Overview.
WHAT TO DO NEXT
*Contact your business/organization’s bank today. You may also need to contact your accountant to assist in the preparation of materials.
*Share this with other potentially eligible business owners in your community.
*Review the checklist prepared by the US Chamber of Commerce.
*If you use a service for payroll processor such as ADP or Paychex they may have the necessary payroll report that will be required to apply for this program.