Payroll Protection Program Initial Guidance, Application Released
Earlier today, the federal government issued guidance and a sample application for the Payroll Protection Program established under the CARES Act. The Small Business Administration will administer the program through its preferred lenders, banks and credit unions across the country.
The Payroll Protection Program, which according to the administration, is expected to be up and running on April 3, would provide cash-flow assistance through 100 percent federally guaranteed loans to employers with 500 or less employees who maintain their payroll during this emergency. If the employer maintains its payroll, then the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven, which would help workers to remain employed and affected small businesses and our economy to recover quickly from the COVID-19 crisis.
More information about the program can be found here.
A sample application for borrowers can be found here.
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