Keeping Workers Paid and Employed Act
March 27, 2020
Forgiven loans is a hot topic for our business community. The Paycheck Protection Program is where you will find this information. The bill will need to pass the house and once it does go to www.sba.gov to access these funds. Small Businesses will apply through an SBA Approved lender.
This is an excerpt from a article by Lusis Beltran on Barron's.
"For small business, one of the more important sections of H.R. 748 is the Paycheck Protection Program. This program gives the SBA the ability to guarantee $350 billion in loans to small businesses via a network of more than 800 banks. The Paycheck program provides eight weeks of cash-flow assistance to small businesses with 500 employees or fewer.
The low-interest loans are meant to cover payroll costs, paid sick leave, supply-chain disruptions, employee salaries, health-insurance premiums, and mortgage payments. The maximum loan amount is $10 million while the interest rate on the loans can’t surpass 4%.
If the employers maintain their payrolls until June, the portion of the loans used for payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven."
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