The U.S. House of Representatives and the U.S. Senate have passed a stimulus bill that would restart the Paycheck Protection Program (PPP).
Today, the Center for Rural Affairs released a fact sheet for small businesses with information on how to apply for the program, who qualifies, and tips for success.
“The COVID-19 pandemic presents challenges that are out of the control of business owners,” said Molly Malone, policy assistant. “Decreased demand, shifting markets, and a slowed economy will hit us all in different ways. Small businesses are the bread and butter of rural communities and the PPP is one tool business owners can use to help manage the economic downturn and inject money into their community.”
The PPP is a U.S. Small Business Administration (SBA) program that was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, to support small businesses economically impacted by COVID-19. The CARES Act initially allocated $349 billion to the PPP.
On April 16, the SBA announced that the PPP had reached the maximum loan limit authorized by Congress, just 14 days after small businesses were first able to apply.
PPP Fact Sheet:
Who:
From a one-person shop to a 500-employee operation, small businesses across the U.S. qualify. Even some businesses with more than 500 employees can apply if they meet the Small Business Administration (SBA) industry standards.
What:
Up to $10 million in a forgivable loan to cover eight weeks of business costs, which include payroll and other forms of compensation, utilities, rent, and mortgage interest payments. The loan can be used for expenses generated from Feb. 15 to June 30, 2020.
When:
You can apply now, and the program states it will run through June 30, 2020, but the funds can run out.
Where:
You can visit Sba.gov/paycheckprotection/find to find a list of banks that are processing PPP loans. You should contact the bank to ask about the process as it can vary depending on the lender. The list of banks is constantly evolving.
Why:
With the COVID-19 outbreak, there are several challenges that small businesses can’t control. Decreased demand, shifting markets, and a slowed economy hit each small business in different ways.
For more information and tips for success click HERE.