CARES Act Paycheck Protection Program
The Basics of the PPP Loan
The CARES Act includes funding for the Paycheck Protection Program for small businesses and non-profits. This includes forgivable loans that employers can use to cover employee pay.
In short a business can get up to 2.5x the cost of payroll and all money spent on eligible expenses (including payroll) will be fully forgiven by the bank and the bank will be reimbursed by the federal government.
To have the loan forgiven an employer must retain and pay employees until mid-June (so employers can’t reduce hours or fire employees in this time period).
That is the basics of what you need to know.
To apply for the loan, use this form and apply at an eligible bank. The form can be found at SBA.Gov’s page on the “Paycheck Protection Program.”
To learn more, see Micheal Best’s “CARES Act – SBA’s New Paycheck Protection Program for Small Businesses & Nonprofits.”