Treasury Deptartment and SBA Announce "Paycheck Protection Program"
The Treasury Department, in conjunction with the Small Business Administration (SBA), has announced the launch of the new $349 billion “Paycheck Protection Program.” This federal loan program is intended to help small businesses with their payroll and other business operating expenses and to provide capital to businesses without collateral requirements, personal guarantees, or SBA fees. All loan payments will be deferred for six months and the SBA will forgive the portion of loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. Notably, the program is available retroactively from February 15, 2020, so that employers can rehire recently laid-off employees through June 30, 2020. The Treasury Department has also issued: (1) a one-page Paycheck Protection Program fact sheet; and (2) Q&A documents for both lenders and borrowers. The SBA has launched its own related webpage dedicated to the Paycheck Protection Program, which includes a sample application for borrowers.
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