Paycheck Protection Program Helps Small Businesses from COVID-19 Issues
Ever since the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic on March 11, 2020, life for millions of Americans drastically changed in a matter of weeks. Georgia and most states in the U.S. then issued “shelter-in-place” orders to “flatten the curve” by having residents stay home and practice social distancing.
Although essential services such as grocery stores, restaurants (delivery or take-out only), and pharmacies remain open, many businesses either closed their doors until further notice or continue to operate while struggling to pay their employees. This is especially true for small businesses going through this ordeal.
Fortunately, the U.S. federal government signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27. This legislation aims at supporting small businesses under one of its measures, which is the Paycheck Protection Program (PPP).
The nearly $350-billion program is designed to give U.S. small businesses up to eight weeks of cash-flow assistance for payroll costs (i.e. salaries, wages, commissions, and cash tips) and debt obligations (e.g. mortgage, rent, utilities, insurance premiums, etc.) to ensure businesses remain open, workers stay employed, and leases are paid. There are no fees to enter this program and all of these expenses will be forgiven in full with no strings attached.
The following types of small businesses qualify for the Paycheck Protection Program:
- Sole proprietorships
- Independent contractors
- Self-employed individuals
The Paycheck Protection Program essentially mirrors the Small Business Administration’s (SBA) existing 7(a) loan program but has a full federal guarantee, underwriting standards that are more relaxed, and broader permitted uses. Find an SBA-backed PPP lender by checking out the SBA’s Lender Match tool (https://www.sba.gov/paycheckprotection/find)
At Robert James Trial Attorneys, we prioritize people over profit. During this crisis, our legal team will donate advertising dollars to educate our friends and family on available resources and safe practices. We are committed to helping all of you stay safe and survive this ordeal. WE STAND WITH YOU!
This is a PSA only.