The Paycheck Protection Program (PPP) forgivable loans for Small Businesses.
The Paycheck Protection Program (PPP) now authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as the loan proceeds are used to cover payroll costs, mortgage interest, rent, and utility costs. This is over a 8 week period after the loan is made, with employee and compensation levels maintained.
Payroll costs will be capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. For example, all businesses including nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self-employed individuals. Also, independent contractors with 500 or fewer employees can also apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. For more information http://www.sba.gov