The Federal Paycheck Protection Program was created through the CARES Act and is designed to provide a direct incentive for small businesses to keep their workers on their payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, the SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.
Banks participating in the program will decide the size of loans and how quickly they will need to be paid back if not forgiven.
Businesses, including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act, with 500 or fewer employees may apply. And, businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
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