The federal government’s Paycheck Protection Program (PPP) is now accepting new applications from businesses affected by Covid-19.
The program had been unable to accept new applications for a while as it had used up all of its appropriated funds, but has since been replenished with $250 billion.
The program, which is run through the Small Business Administration, provides loans to businesses struggling due to the ongoing coronavirus pandemic and forgives the loan if business owners follow certain guidelines. The loans are specifically meant to assist business owners in covering expenses like payroll and others vital to the survival of the business and the retainment of employees. Businesses can receive loans through approved SBA lenders after being approved and enrolled in the program.
The loan received by a business through the PPP can be forgiven if the business keeps all of its employees on payroll or rehires them by June 30. 75% of the loan must also go directly to payroll costs, with the other 25% can be used for other expenses, such as rent.
Note: Forgiveness of the loan must specifically be requested from the lender in writing.