Paycheck Protection Program
As of April 16, small business relief funds offered through the Paycheck Protection Program (PPP) had been depleted.
On April 27, PPP officially reopened at 10:30am EDT. The program was refunded with another $310 billion available to small business owners. If you haven’t already, contact your bank or preferred lender! If you need more help and clarification on what PPP is, if you qualify and how to ensure your loan is forgiven, keep reading…
The $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on Friday, March 27.
The legislation includes a number of business-boosting relief programs, the largest of which is the Small Business Association’s (SBA) Paycheck Protection Program or PPP.
As of Wednesday night (April 15), the SBA is reporting that 1,562,000 PPP applications have been approved, totaling over $329 billion.
The good news is that loan applications have officially been approved by the SBA, and money should be in the accounts of more than 1.5 million small business owners shortly.
One PPP loan tracker puts the total estimated loan disbursement figure at $16.4 billion as of Wednesday night.
If you’d like more on these loans and other relief available through the $2 trillion CARES Act, continue reading…
The text of the bill can be read on the official Congress website right now.
Affect On Small Businesses
Here’s how this will affect small businesses.
So far, reporting on the bill indicates that it includes:
- $349 billion for small business loans
- $50 billion for companies who retain employees on payroll to cover 50% of workers’ paychecks
- SSA payroll tax deferment (6.2%) for companies
- $500 billion in loans for larger distressed companies
- $130 billion for hospital funding
- $150 billion for state and local governments
The CARES Act primarily provides relief to small business owners through SBA loans.
Need Assistance Hiring Temporary Workers
If you need some assistance in recruiting and hiring workers in this uncertain labor market, contact Flexicrew today.