President Trump on Friday signed the nearly $500 billion emergency coronavirus relief package into law replenishing the Payment Protection Plan (PPP) fund for small businesses amid the COVID-19 pandemic.
The legislation includes:
- $310 billion in new funds for the Paycheck Protection Program, which provides small business loans that can be forgiven if used for wages, benefits, rent and utilities. $60 billion is set aside for small lenders.
- $60 billion for Small Business Administration disaster assistance loans and grants.
- $75 billion in grants to hospitals dealing with a flood of patients.
- $25 billion to bolster coronavirus testing, a key part of efforts to reopen the economy.
Payment Protection Program
The PPP was created as part of the more than $2.2 trillion stimulus package, known as the CARES Act, which passed last month. The program converts the small business loans to grants and would be fully forgiven if 75 percent of the loan is used to keep employees on the payroll.
Most application is done online. It is a a very short form to fill out. Be ready to provide payroll information as loan is 2.5x of monthly payroll.
Source: CNBC News