The Paycheck Protection Program
Posted on April 1, 2020
Is your business struggling for a financially neutral method to retain your employees without a layoff or furlough?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized two types of financial assistance:
- Economic Injury Disaster Loan Assistance (EIDL)
- Paycheck Protection Program (PPP).
The Paycheck Protection Program is available to any business with 500 or fewer employees that can demonstrate “economic uncertainty” due to COVID-19. The loans are also available to sole proprietorship’s, the self-employed, and gig workers. The businesses will have had to be operational as of February 15th
- The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. Due to likely high subscriptions, at least 75% of the forgiven amount must have been used for payroll).
- Loan payments will also be deferred for six months.
- No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
We recommend that you immediately contact an SBA-certified lender, which includes most banks, credit unions, and other financial institutions. The SBA is scheduled to authorize lenders to process applications on April 3rd.
eqHR Solutions’ trusted advisors are ready to assist you in your unique HR needs and are happy to answer any questions that you may have and are still fully prepared to continue to service all of your Human Resource and Payroll needs. Included below is some valuable information that can be applied to all businesses.
If you find that you have a unique situation or would like assistance with a policy or procedure for the current Coronavirus situation, please do not hesitate to contact your assigned trusted advisor or any other member of our team.
CDC -Information & Interim Guidance for Businesses
CA – FAQs COVID-10
US Dept of Labor – FAQ Family Medical Leave
EDD – FAQs COVID-10
CA/OSHA – Covid-19 guideline