Paycheck Protection Program (PPP)

On March 13, 2020, President Donald Trump declared a state of emergency for all states, territories, and the District of Columbia due to the ongoing COVID-19 (Coronavirus Disease 2019) pandemic.  The severity and the magnitude of this rapidly spreading pandemic led to a worldwide threat to health, travel, and commerce.  The state of emergency allowed the Federal, State and local public health officials to take measures to minimize the public's exposure to the novel Coronavirus.  The measures included a mandatory nationwide closure of restaurants, bars, gyms, cancellation of sporting events, large gatherings and restrictions on travel outside the United States.  Businesses of all sizes are experiencing an economic hardship as people stay home to keep safe distance from other, stay-at-home orders were mandated, and all non-essential businesses were ordered to close until further notice.

On March 27, 2020, the President signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to provide emergency financial and health care assistance to individuals and businesses affected COVID19.  The CARES Act has set aside some funds for small businesses to receive an economic disaster loan from the U.S. Small Business Administration  (SBA) for some relief from the hardship and to protect the paycheck of employees of the affected small businesses.  The PPP loans will be 100% guaranteed by SBA, and the full loan principal may qualify for loan forgiveness.  The program is for small businesses with less than 500 employees both for profit and non-profit entities are qualified to tap into $350 USD set aside for this progam.

The maximum limit is $10 Million USD based on a businesses payroll expenses.  The money is available on a first come basis and it is now (April 6, 2020) available through SBA lenders that participate in the SBA 7(a) Loan program.  Check with your financial institution and apply online since most banks have to preference to work with their existing customers.  More to follow on the specifications of the PPP loan. Feel free to send an email at [email protected] if you have any specific questions.