In order to help small business impacted by Coronavirus-related issues between February 15 and June 30, 2020, the CARES Act allows those businesses to apply for loans to cover eligible expenses during the covered period.
Eligible expenses include:
- Payroll costs
- Costs related to the continuation of group health-care benefits during periods of paid sick, medical, or family leave and insurance premiums
- Employee’s salaries, commissions, or similar compensation
- Payments of interest on any mortgage obligations (not including prepayment fees or payment of principal on the mortgage itself)
- Rent (including rents under a lease agreement)
- Interest on any other debt obligations that were incurred before the relevant covered period
We have been working diligently to gather the data necessary to apply for this money to help weather the storm. The loan application is due 4/3/2020.
The Small Business Administration will forgive all loans under this program if:
- Loans are used exclusively for their intended purposes (see bullet points directly above)
- Loans are used to offset no more than eight weeks (the maximum amount of time payroll expenses would be fully offset) of eligible payroll expenses
- Businesses retain employees at salary levels comparable to before the crisis
Once we have received the funds, leadership will work diligently to allocate those funds appropriately to offset the effects of the COVID-19 pandemic, isolation and shelter-in-place orders, and changes to our business operations as a result of project / workflow changes resulting from client concerns.
The Tax Foundation has also provided a good summary of the Paycheck Protection Program that’s easy to understand.