NATIONAL — The Small Business Administration announced a program to help small businesses through pandemic shut down, provided they maintain their workforce.
The Paycheck Protection Program earmarks $349 billion for small businesses to keep their employees and bills paid. The loan is meant to cover payroll for 8 weeks plus about 25%. If a company maintains their workforce, the SBA will forgive the portions of the loan used for the 8 weeks of payroll and some eligible expenses. Loan payments will be deferred for 6 months.
According to the Paycheck Protection Program webpage forgiveness can vary based on how much of the workforce is re-hired and if pay decreases.
Now through June 30th, 2020, businesses with fewer than 500 Employees, 501(c)(19) veteran's organizations, and other businesses described on the Small Business Administration website affected by COVID-19 can apply for up to $10 million. Sole-proprietors, self-employed people, and independent contractors are encouraged to apply.
The loan also makes room for small businesses in the hospitality and food industries, saying on their website that each store location could be eligible. The SBA also encourages businesses to look into disaster assistance, enhanced debt relief or other relief options.