The Treasury has issued guidance on the Paycheck Protection Program (PPP) that is part of the massive $2.2 trillion CARES Act stimulus package. The program allows for a low-interest (1%) loan that will be forgiven if employee wages and count are maintained through June 30, 2020 and if the money is spent on payroll costs, rent, mortgage interest, or utilities in the eight-week period from the origination date. The program is available through June 30, 2020, and lenders were scheduled to begin processing applications on April 3, 2020 and April 10. The application process is temporarily on hold.
This program is available for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons) as well as non-profit organizations. The PPP loan is different from the Economic Injury Disaster Loan (EIDL).
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