Applications are available for Paycheck Protection Program loans.
$284 billion has been approved for businesses that need help paying their bills and those who received funds last year can reapply.
The forgivable loans are backed by the the government and are to be an incentive for small businesses to keep their workers.
A loan through the Paycheck Protection Program covers payroll costs, benefits, housing stipends, and parental, family, medical and sick leave. The funds can also be used to cover operating costs, including rent, utilities and personal protective equipment to keep workers safe from COVID-19.
60% of the total loan must be used on payroll expenses and the loan excludes sick and family leave wages that qualify for a refundable tax credit under the Families First Coronavirus Response Act.
There is a $100,000 annual compensation per employee limitation and small businesses that have 500 or fewer employees can apply, including veterans organizations, tribal business concerns, sole proprietors, independent contractors and eligible self-employed workers.
A business does not need to qualify as a “small business concern” to be eligible for the PPP but you must meet other criteria.
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