What businesses need to know about CARES Act
On March 27, President Donald Trump signed into law the Coronavirus Aid Relief and Economic Security Act (CARES). One part of the CARES Act is the Paycheck Protection Program (PPP).
The PPP allows any business concern, nonprofit organization, veteran's organization or tribal business to receive a covered loan if that entity employs not more than 500 people.
Proceeds from the PPP can be used for payroll, insurance premiums, rent, utilities and more.
PPP loans under the CARES Act will be distributed by banks directly to borrowers. Guidelines for qualifying for a loan should be available at banks in the next few days.
It is best to contact your banker NOW to express your interest in participating in the Paycheck Protection Program!
The purpose of the program is to keep workers engaged in the business even if they are or are not working. Our understanding is that if the loan is used for the purposes of the PPP, the loan could be forgiven.