Highlights of the Paycheck Protection Program

In Coronavirus by Phyllis Ludwig

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.