Pamela Kweller RSSA Staff
We know that the past few weeks have been tough on small businesses across the country. Fortunately, the Paycheck Protection Program (PPP) under the CARES Act is now available.
On Friday March 27, 2020 the President signed the $2 trillion CARES (Coronavirus Aid, Relief, and Economic Security) Act, H.R. 748. One of the many significant provisions of this bill is the Paycheck Protection Program. Of the $2 trillion, $377 billion will be devoted to small business relief.
The Paycheck Protection Program is an SBA (Small Business Administration) loan that helps businesses keep their workforce employed during the COVID-19 crisis. It was developed to incentivize small businesses that keep their workers on the payroll.
According to the SBA, loans will be forgiven “if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.” There are other stipulations including using at least 75% of the forgiven amount for payroll. It is important to understand what you need to do in order to have the loan fully forgiven.
We’ve partnered with Kabbage to connect you with these loans to help you cover payroll, rent, utilities and other eligible debt obligations. Click here to apply.
The program is accepting applications through June 30, 2020, with loans available for 2.5 times your average monthly payroll for 2019, up to $2 million. There’s no collateral or personal guarantee. Up to 100% of the loan can be forgiven, with the remainder treated as a two-year loan with a low fixed interest rate.