On March 27th, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the CARES Act the Small Business Administration (SBA) will implement the Paycheck Protection Program, which will allocate $349 billion as loans to small businesses, 501(c)(3) organizations, and veteran’s organizations affected by the spread of COVID-19.
Eligible businesses and non-profits can apply for a loan of up to $10 million to cover costs such as payroll, mortgage/rent, and utilities. Applications will be accepted by qualifying lending institutions starting April 3rd. It is important that businesses make the application as soon as possible since the fund is limited. The loans are being provided with no fees and 0.5% interest. Most importantly, up to 8 weeks of qualified payroll will be forgiven from the loan if certain conditions are met.
The application for the Paycheck Protection Program can be located on U.S. Treasury’s website, which you can access by CLICKING HERE.