What You Need to Know about Stimulus Package as A Business Owner
Congress is providing $377 billion to support small business through the Paycheck Protection Program (PPP). Here are some Q&As you might be interested to know.
How will PPP work?
PPP would provide 8 weeks of cash-flow assistance through 100% federally guaranteed loans to small employers. The loans are forgivable which means that the portion of the loan used for payroll maintenance, rent, utilities, health insurance premium and mortgage interest would be forgiven. The loan will be made through participating banks and large credit unions. The banks lending the money will receive reimbursement from the Treasury Department.
Who qualifies for PPP?
- Small employers with 500 employees or fewer
- Self-employed individuals and freelancers
- Certain nonprofits organization with under 500 employees
- Business that meet the current SBA size standard
How much is the loan?
Loans are limited to $10 million. The size of the loan equals 250% of an employer’s average monthly payroll. Employers that have recently laid off employees would be required to repay a large portion of their loan. Loans used to cover annual rate of pay of $100,000 are not forgivable.
If you are interested in applying for the loan, please contact us at firstname.lastname@example.org. The loan is available immediately through more than 800 existing SBA-certified lenders.