Highlights of the Payment Protection Program

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:
    • Payroll
    • Health care benefits
    • Rent or mortgage
    • Utilities
  • 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.

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