The United States Senator from Nevada, Jacky Rosen, has helped to pass the Paycheck Protection Program (PPP) to help the nation’s small businesses who are being hit hard by the economic effects of COVID-19. This program is part of the $2 trillion stimulus package recently passed by Congress.
What is the Paycheck Protection Program?
The PPP was designed to provide immediate relief to small businesses struggling during the coronavirus pandemic with $350 billion to help cover payroll and keep workers employed. Under this program, businesses with 500 employees or less can qualify for low-interest loans or grants to help fund payroll costs. Almost all small businesses can apply for these relief benefits, with the exception of political organizations and religious institutions.
This program is retroactive to February 15, 2020, in hopes that some small businesses will be able to bring back workers who were already laid off. PPP loans are available through June 30, 2020.
How Do PPP Loans Work?
The federally-guaranteed loans that are part of the PPP provide employers with cash-flow for payroll costs during this emergency. According to Senator Rosen’s office, the loans will be forgiven if employers maintain their payroll. This is all in an effort to keep workers employed and to keep small businesses in a position to bounce back quickly once the economy reopens. Up to 8 weeks of payroll is forgiven based on employee retention and salary levels.All current SBA 7(a) lenders are eligible lenders under the Paycheck Protection Program.
Does Grant Money Need to Be Paid Back?
As part of the PPP, Senator Rosen and others pushed the Emergency Economic Injury Grant program for small businesses. This grant is the first of its kind and does not need to be paid back. If your small business qualifies for the Emergency Economic Injury Grant, you can receive up to $10,000 in cash for business expenses related to payroll costs.
What Are Eligible Payroll Costs Under the PPP?
The following costs are eligible for economic assistance under the PPP:
- Salary and Wages
- Payment for Vacation and Parental, Family, Medical or Sick Leave
- Payment of Retirement Benefits
- Payment of Group Health Care Benefits
- Payment of State or Local Tax Assessed on Employee Compensation
- Allowance for Dismissal or Separation
Employee or owner compensation that exceeds $100,000 is not eligible under the PPP. Also, if employees reside outside of the United States, their compensation is not covered through this program.
Get more details from Senator Rosen’s Small Business Resource Guide for Nevadans on how to use the Federal resources available to you and your employees.
For more information on the coronavirus pandemic, check out these COVID-19 resources for Nevadans.
The Las Vegas Sun. “A Guide for Small Businesses to Get Help in Stimulus Package.” LasVegasSun.com, 29 Mar. 2020. Retrieved 30 March 2020 from m.lasvegassun.com/news/2020/mar/29/small-businesses-are-not-forgotten-in-stimulus/.
Disclaimer: The information in this article comes from the source link above.