On March 27th President Trump signed in to law the CARES Act also known as the Paycheck Protection Program.
Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
An Coronavirus Relief Loan can be used for the following:
- Payroll Support
- Paid Sick Or Medical Leave
- Insurnace Premiums
- Mortgage Payments
- Rent
- Utilities
In order for your business to meet the eligibility requirements for a Coronavirus Relief Loan, it must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractors.