Many small businesses and their employees have been impacted by COVID-19.
To help small businesses and their workers though this pandemic, the President has authorized the SBA to provide assistance.
There are several SBA loan programs including Enhanced Debt Relief and Disaster relief programs to assist businesses during this tough time.
The Coronavirus Aid Relief, and Economic Security (CARES) Act is allocating $350 billion. Also known as the Paycheck Protection Program, it provides 100% federally guaranteed loans to small businesses.
Importantly, if all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest or utilities. Up to 100 % of the loan is forgivable.
SBA guidelines have not yet been issued on these loans. Once the administration releases more details we will share that information with you.
As always, Payroll Service Solutions is here to assist and support you through these challenging times.