The Department of the Treasury unveiled guidance for the $349 billion Paycheck Protection Program authorized in the CARES Act. The Program will provide small businesses with guaranteed loans to support 8 weeks of payroll costs, interest on mortgages, rent, and utilities, and the portion used on these expenses will be forgiven if “employee and compensation levels are maintained.”
The guidance also notes that “due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll.” This series of guidance includes further information for lenders, and borrowers, as well as the application for borrowers, to submit to the Small Business Administration, which can be found here.
Small businesses and sole proprietorships can submit applications beginning this Friday, April 3, 2020, while independent contractors and self-employed individuals can submit beginning on April 10.
For more information about the Paycheck Protection Program, click here