One of the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a Paycheck Protection Program that is intended to keep small businesses (fewer than 500 employees) running and their workforce employed. The program authorizes up to $349 billion toward job retention and certain other expenses. The funds can be used to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
- For a top-line overview of the program, click here.
- Borrowers: for more information, click here.
- Lenders: for more information, click here.
- Application for borrowers can be found here.
Further information, including the interim final rule on the Paycheck Protection Program, can be found here.
Starting April 3, 2020, small businesses and sole proprietorships can apply, and then on April 10, 2020, independent contractors and self-employed individuals can apply. Those who are interested are strongly encouraged to apply as quickly as possible because there is a funding cap.
Full information on SBA actions related to the CARES Act can be found on their dedicated webpage.