What is the Paycheck Protection Program? The Paycheck Protection Program is a potentially forgivable loan to help small businesses maintain payroll and cover expenses during the covid-19 pandemic.
Who can apply for a Paycheck Protection Program loan?
- small businesses with 500 or fewer employees (or if the business is accomodations or food services 500 employees or less per location)
- 501(c)(3) entities with fewer than 500 employees
- sole proprietors
- independent contractors
- self-employed individuals who regularly carries on a trade or business
- tribal businesses that comply with SBA limits
- 501(c)(19) veteran organizations that comply with SBA limits
What are the limits of the Paycheck Protection Program?
- the maximum loan is 2.5 times average payroll of the company through June 30, 2020
What are the repayment obligations of the Paycheck Protection Program?
- borrowers who participate in this program are eligible for loan forgiveness equal to the amount the borrower spent on payroll costs, interest on mortgage obligations, rent (pursuant to a lease agreement), utility payments, and additional wages paid to employees
- loan forgiveness is reduced however if there is a reduction in the number of employees or a reduction in wages of greater than 25%
The business law attorneys of Kelley, Kelley and Kelley are here to assist your small business in determining which loans may benefit your business and assist you in obtaining assistance. Our attorney’s have decades of experience in assisting businesses with the SBA. Call us or email us today to discuss how we can help you working with the SBA in applying for protections under the CARES Act. We assist clients in Schaumburg, Hoffman Estates, Bartlett, Streamwood, Barrington, SOuth Barrington and throughout the Northwest Suburbs.