The Coronavirus Aid Relief and Economic Security (CARES) Act created the Paycheck Protection Program (PPP) under the guidance of the United States Small Business Administration to assist small and medium-sized businesses suffering as a direct result of the Corona Virus 19 (COVID-19) worldwide pandemic. If your business has a record of fiscal health but needs assistance weathering the storm, you might qualify for a PPP loan.
As part of the CARES Act, Congress allocated $350 billion in loan funding for businesses that need help keeping workers employed and paying bills during the COVID-19 pandemic and subsequent economic downturn. PPP loans are 100% federally guaranteed and can be forgiven so long as businesses keep their workers employed during the pandemic.
If you have a small or medium-sized business with fewer than 500 employees that showed financial strength before the COVID-19 pandemic but needs fiduciary assistance now, you may qualify. The purpose of the PPP is to provide businesses with the funds to keep as many workers employed as possible until revenue returns to sustainable levels.
Borrowers can receive up to 2.5 x the borrower’s average monthly payroll costs not to exceed $10 million, comprised of salary compensation, payment of cash tip or equivalent, payment for vacation, parental, family, medical or sick leave, and much more.
The application process for the PPP can be daunting. Thousands of businesses around the country are seeking aid. It’s important to make sure your application is filled out correctly and all the proper documentation is provided. Cornerstone Capital Advisors can oversee this process to ensure your success.