The Paycheck Protection Program, part of the CARES Act, promises to bring much-needed relief to businesses and to help keep their employees on-board until businesses can begin resuming operations. Read on for some commentary on how the program works and how it can benefit your business. The program may be a vital tool in keeping your business prepared for the re-opening of the economy, which will likely happen in stages and roll-out differently depending on the status of the pandemic in a given area.
“The Paycheck Protection Program is perhaps the biggest item for business owners in the $2 trillion Coronavirus Aid, Relief and Economic Security, or CARES, Act that was passed last week by the federal government… allocates $349 billion to provide businesses with a short-term cash infusion. Critically, those committed to keeping employees on their payroll during the pandemic have the potential for those loans to later be partially, if not totally, forgiven…Through the program, businesses can apply for a loan of either 2.5 times their average payroll over a 12-month period or $10 million, whichever is lower. The funds can be used to pay employees, rent, utilities or certain other overhead costs.”
Read: Ask the Experts: Breaking down the Paycheck Protection Program at ROI-NJ