New SBA Paycheck Protection Program Announced

WEII Note: Detailed information on the new SBA Paycheck Protection Program is being disseminated by the U.S. Small Business Administration. A portion of that guidance is reprinted with permission below. For complete and up-to-date information, sign up for the SBA e-newsletter at www.sba.gov/updates.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Under this program:

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

Click here to learn more.