Paycheck Protection Program Accepting Applications from Small Businesses
April 9, 2020
Congress has created the Paycheck Protection Program (PPP) which authorizes up to $349 billion in forgivable loans to be issued to small businesses. These loans can be utilized to pay employees during the COVID-19 crisis and will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the eight week period after the loan is made; and
- Employee and compensation levels are maintained.
Applications for small businesses and sole proprietorships were available starting April 3; starting April 10, independent contractors and self-employed individuals can apply. Applications can be made through any existing Small Business Administration (SBA) lender, or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. All businesses that are interested in applying for the PPP are encouraged to do so as soon as possible. It is anticipated that the PPP will attract many applications and funds are limited.
For more information, check out this Fact Sheet from the U.S. Department of the Treasury.