The Coronavirus has been not only detrimental to the health of Americans but also their wealth. In an attempt to help small business owners across the nation a $2 trillion dollar economic rescue package officially known as the Coronavirus Aid, Relief and Economic Security Act (CARES) has been put in place.
President Trump signed this act into law authorizing the Small Business Administration (SBA) to offer 100% guarantees for up to $349 billion in loans for small businesses that need to cover payroll, rent, and other bills. It is called the Paycheck Protection Program (PPP) and its purpose is to save jobs and keep our nations small businesses afloat.
The verification process starts HERE with a five page on-line eligibility application. Please be prepared with your payroll, rental and/or mortgage, and utility costs. The program is funded by both private lenders and the U.S. Treasury and runs through June 30. Loan payments are deferred at least six months and include a 10-year term with interest capped at 4%.
The SBA has stated that companies that keep employees on the payroll for eight weeks will receive loan forgiveness for the portion of the loan used for payroll, rent, mortgage interest or utilities. For more information, check out the Small Business Administration’s website.