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
- Small employers with 500 employees or fewer
- Self-employed individuals and freelancers
- Certain nonprofits organization with under 500
- 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