The Paycheck Protection Program helps small businesses keep their employees during this COVID-19 situation. Paycheck Protection Program will help small businesses and self-employed individuals and independent businesses.
The Paycheck Protection Program is a loan to provide an incentive for small businesses to keep their workers on the payroll.
SBA will waive off loans if all employees are kept on the payroll for two months and the money is utilized for payroll, rent, mortgage interest, or utilities.
Loan forgiveness is based on maintaining employee and their salaries, It will be reduced if the full-time employees count declined or if salaries decrease.
Who Can Apply:-
- Businesses with 500 or fewer employees can avail of benefits e.g. nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors are eligible.
- Business with a NAICS Code that starts with 72 (Accommodations and Food Services) that has more than one location and employs less than 500 per location
When to Apply:-
- Small businesses and sole proprietorships can apply from April 3, 2020.
- Independent contractors and self-employed individuals can apply from April 10, 2020.
Apply for this as quickly as you can because there is a funding cap.
How To Apply:-
You can apply through any SBA 7 (a) lender or through any federally insured depository institution, or federally insured credit union that is participating. Other lenders will be available to make these loans once they are approved and enrolled in the program.
Paycheck Protection Program is implemented by SBA with support from the Department of the treasury. For more info, you can visit at- https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program