Update on Paycheck Protection Plan Loans
A paycheck protection plan loan can provide small businesses adversely affected by the COVID-19 virus with a way to pay their employees, rent and utilities. These loans can be forgiven if the loan is used for the approved purposes. Businesses can get up to 2.5 times the amount of their average monthly payroll in 2019. The forgiveness will be reduced if the number of employees or the amount paid in the 8 weeks after receipt of the loan is reduced. Businesses that have already furloughed or laid off employees can still qualify for forgiveness if they bring the employees back on board before June 30.
Applications and guidance on how to apply for a Paycheck Protection Program loan is now available. Applications need to be made with participating SBA approved lenders and banks. Businesses can start applying on April 3 and independent contractors and self-employed individuals can start applying on April 10.
You can find the application Here and an information sheet on how to apply Here.
© Caulkins & Bruce PC, 2020. The information presented is for informational purposes only. You should not construe it as legal advice or a legal opinion on any specific fact or circumstances.
