Emergency Small Business Loans/Grants Rolled Out With Some Glitches

The Treasury Department posted the final application and the Small Business Administration posted the interim final rule for the Paycheck Protection Program (PPP) at the end of last week. Despite the official roll out of the program, some banks are still not yet accepting applications. The PPP is a new temporary product under the Small Business Administration’s (SBA 7[a]) Loan Program, which was created by the CARES Act. It provides up to $10 million for eligible nonprofits, such as those that serve persons with disabilities, to cover payroll, operations, health insurance premiums, facilities costs, and debt service. It is available to nonprofits with 500 or fewer employees (includes full time and part time). Employers that maintain employment between March 1 and June 30 or rehire employees by June 30 would be eligible to have their loans forgiven. Since this is a first-come, first-served process and there is a finite amount of funds ($350 billion) for this program, interested applicants are urged to check with their lenders as soon as possible.

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