This is an update on the Paycheck Protection Program which is part of the Small Business Interruption Loan Program within the recently passed CARES Act.
CPA members with 500 or less employees can start applying as of last Friday, April 3. You can start applying through your local bank.
We understand that some banks are having problems executing the program. For example, Wells Fargo is limiting applications only to businesses with 50 or less employees, rather than 500 employees, which is a problem for thousands of businesses. If your loan application is not being properly handled by your bank, feel free to let us know.
Background: The Paycheck Protection Program is a loan program from the CARES Act available to any business or nonprofit organization which has 500 or less employees. Loans are offered up to 2.5 times average monthly payroll.
The key feature is loan forgiveness of up to 8 weeks of average payroll, mortgage interest, rent, utilities, and health care benefits.
- See the Department of Treasury Paycheck Protection Program Fact Sheet here.
- See the PPP Loan Application posted by the Department of Treasury here.
Note: If you have laid off all or most of your workers and thus not paying employee payroll, the Emergency Injury Disaster Loan may be the better choice for you.
Please contact David Morse, CPA Tax Policy Director, (firstname.lastname@example.org) if you have questions.