The $2 Trillion Coronavirus aid package (CARES Act) includes the Paycheck Protection Program (PPP) which, is intended to provide short-term cash flow assistance to eligible small businesses to help these businesses and their employees deal with the economic impact due to the COVID-19 pandemic.
Small Business Administration (SBA)-approved lenders provide low-interest loans to businesses with 500 employees or fewer. Loans can be used to cover payrolls costs, paid sick leave, supply chain disruptions, salaries, health insurance premiums, mortgage/rent, and utilities. The program is retroactive from February 15, 2020 and will last until June 30, 2020. To be eligible for loan forgiveness, businesses must retain their employees and pay them at least 75% of their compensation.
Special thanks to additional authors: Angela Bidnick and Carson Mullins Pigg.