The Small Business Administration (SBA) application materials for the Paycheck Protection Program (PPP) are now active and available on the SBA website.
The PPP is a SBA loan program that was included in the CARES Act stimulus program enacted on Friday March 27, 2020. This program prioritizes millions of Americans employed by small businesses by authorizing up to $350 billion toward job retention and certain other expenses. These provisions are highly attractive to employers as they allow for up to 100% forgiveness of the loan.
Small businesses and eligible nonprofit organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
- Eligible recipients may qualify for a loan in the amount of 2.5x their average monthly payroll costs, up to $10 million.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Immediate Steps for Employers
Banks will begin accepting applications on Friday April 3rd. Contact your SBA banking representative today and begin preparing application materials for immediate submission.
Hilb Group hosted a COVID-19 Employer Advisory Session where Hilb Group’s benefits attorney, Suzanne D’Amato, Esq. provided an overview of the Coronavirus Aid, Relief and Economic Stimulus Act of 2020 (CARES Act 2020) along with further details about the Paycheck Protection Program and how you can access some of the $340 Billion in forgivable loans that are available to help you defray payroll, benefits and operating expenses.
For additional insights and workplace resources employers can leverage in the wake of the COVID-19 pandemic, visit the Hilb Group’s COVID-19 Information Center, or reach out to your local Hilb Group representative.