Agency / Department: Small Business Administation
Resource: Paycheck Protection Loans (CARES Act)
Details: New SBA-backed Paycheck Protection loan program will help small businesses pay for expenses with the following provisions:
– Loans taken by small businesses to keep employees on payroll may be forgiven.
– 501(c)(3)s will also be eligible for this program.
– Federal government will forgive 8 weeks of cash flow, rent, and utilities at 100% up to 2.5x average monthly payroll.
– The law provides $350 billion for this loan program. .
– Businesses and 501(c)(3)s with less than 500 employees are eligible for this new loan.
– Sole proprietors, independent contractors, and self-employed individuals may also be eligible.
– Physician practices are eligible regardless of how they are structured.
– Small businesses in the hospitality and food industry that have less than $500 million in gross receipts with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means that each store location could be eligible.
– If your franchisor appears in the SBA’s National Franchise Directory, assistance will extend down to the franchisee at the store or location level.