Guidance issued from the Department of Treasury on the SBA Paycheck Protection Program (PPP)
Guidance issued April 6, 2020 from the Department of Treasury on the SBA Paycheck Protection Program (PPP)
On Friday, Mar. 27, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Stability (CARES) Act – the $2.2 trillion package aimed at combating the economic damage from the COVID-19 pandemic – into law.
The third phase of government relief, the Act amends Section 7(a) of the Small Business Act to add a Paycheck Protection Program (PPP) under which some businesses may be eligible to receive a loan of up to $10 million on favorable terms, including total forgiveness in the event businesses maintain or restore their payroll, essentially converting the loan into a government grant.
PPP loans will be available through U.S. Small Business Administration (SBA) approved lenders until June 30, 2020.
As banks across the country work to make and fund loans through the program, the SBA has issued a FAQ document designed to provide guidance about its interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”).
Herbein is monitoring SBA and Treasury publications and pronouncements, and will update our clients as new PPP-related information is released.
Herbein is responding to the COVID-19 (Coronavirus) pandemic with our Coronavirus Resource Center, which provides regularly updated information, answers to frequently asked questions and other resources to help during this global health crisis. Continue to check back for more updates in the coming weeks.