Payroll Protection Program (PPP)
Established by the CARES Act, the PPP loan allows small businesses and eligible nonprofits to borrow money to pay employee compensation and benefits. Applications were accepted up until August 8, 2020. Borrowers can receive funds up to the lesser of 2 ½ months of payroll expenses or $10 million.
- Funds must be used to cover payroll (up to $100,000 per employee), benefits, rent, utilities, and interest.
- Borrowers must make a good-faith certification that the need for the loan is based on economic conditions,
- Funds will be used to retain workers and maintain payroll and no other funds were received for the same purposes
- Funds must be used during either the 8-week or 24-week covered period for eligible expenses.
At the end of the covered period, borrowers can apply for forgiveness. The amount of the loan forgiven will not be taxable to the borrower, however, the expenses paid with the forgiven amounts will not be deductible.