Relief for small businesses is here! While the details are emerging, here is what we know about the Paycheck Protection Program so far.
- Purpose is to provide incentives to businesses to retain employees during this crisis period that is related to COVID-19.
- Qualified Businesses include for-profits and non-profits with less than 500 workers.
- Funding covers expenses from February 15 through June 30, 2020.
- Estimated loan value is 2.5 times average monthly payroll plus normal operating expenses (rent, utilities) with some limitations.
- Covered expenses include the following:
- Health care benefits
- Rent or mortgage
- Loan Forgiveness is available. Businesses must commit to maintaining average monthly number of average monthly number of full-time equivalent workers.
Official guidance is forthcoming. In the meantime, start gathering your documents.