Under the CARES Act, businesses with less than 500 employees who have been impacted by the COVID-19 outbreak are eligible to participate in the Payroll Protection Program. This program allows eligible businesses to seek loans in the amount of 2.5x their average monthly salary in the previous year (there is a $10m limit). The loan proceeds are to be used to pay payroll, mortgage/rent payments and utilities. There is a possibility that all, or part of the loan can be forgiven if it is used for permitted uses (e.g. payroll, etc). Guidance indicates that at this time, at least 75% of the funds should be used for payroll expenses to be eligible for loan forgiveness.
The loans will be available for approved SBA lenders.
Below are links relating to the program. If you have questions concerning this program please contact our office and we'd be more than happy to assist you.
https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
https://home.treasury.gov/system/files/136/PPP Borrower Information Fact Sheet.pdf
Paycheck Protection Program (PPP) Frequently Asked Questions
Please find New Jersey Economic Development Authority resources below.
