City of Millbrae Paycheck Protection Program

Press release from the City of Millbrae:

April 27, 2020

This week, an additional $310 billion was added to the U.S. Small Business Administration’s Paycheck Protection Program.

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Funds will be provided in the form of loans that will be fully forgiven when used for payroll costs, and interest on mortgages, rent, and utilities.

Loan payments will also be deferred for six months; no collateral or personal guarantees will be required; and neither the government nor lenders will charge small businesses any fees.

Small businesses that take out loans through the Paycheck Protection Program will have their loans forgiven if they kept their employees working or quickly rehire them and maintain their salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. At least 75% of the forgiven amount must have been used for payroll.

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible for loans through the Paycheck Protection Program.

With this recent addition, more than $659 billion has been allocated to small businesses through the Paycheck Protection Program.

For more information on the Paycheck Protection Program, please visit https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.

This press release was produced by the City of Millbrae. The views expressed here are the author’s own.