Millbrae Announces Paycheck Protection Program For Small Businesses

Press release from the City of Millbrae:

April 1, 2020

At every level, policy makers and government leaders are doing what they can to alleviate the harmful effects of the Coronavirus outbreak.

Last week, Congress passed, and the President signed, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through it, the new Paycheck Protection Program was established, creating a $349 billion fund to help small businesses across the country keep their workers employed.

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.

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.