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Paycheck Protection Program

Here are some frequently asked questions about how the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s Paycheck Protection Program can help you.

The Paycheck Protection Program is:

  • part of Coronavirus Aid, Relief, and Economic Security Act (CARES).
  • an emergency federal loan to help small businesses keep staff.
  • available until June 30, 2020…or until funds run out.

To learn more or apply for the loan AND forgiveness:

  • call your bank. (Loans are distributed through Small Business Administration (SBA) affiliated banks.)

Request up to:

  • 2.5 times your monthly payroll for the 12 months before the loan start date.
    • This is different if your business is seasonal or was not in existence for the full 12 months.
    • Interest rates are 4%, with all interest and payments deferred until at least June 30, 2020.

Use the loans to pay for items not covered by other income (including grant income):

  • employee wages (up to the first $100,000 annually) and commissions
  • health insurance premiums
  • rent
  • interest on mortgage loans
  • utilities

The important part – apply for loan forgiveness!

  • You can apply for part of the loan to be forgiven.
  • You must keep staff and pay them at least 75% of their normal salary.

A part of your loan can be forgiven:
The amount forgiven is equal to the amount you spent during the first 8 week period (after loan start date) on:

  • employee costs
  • rent
  • interest on mortgage loans
  • utilities

*The amount forgiven will be LESS if you let employees go or pay employees less than 75% of their salary during the 8 week period.