Payment Protection Program
During these uncertain times, our small businesses are some of the hardest hit by this pandemic. We want to let you know that Caro cares about your business. We’re teaming up with the SBA to bring the Payment Protection Plan to our businesses in the Midlands. Here are some points of information that you need to know.
Current Information and Q & A SBA 7(a) Paycheck Protection Program Loans Coronavirus Aid, Relief and Economic Security (CARES) Act
The US Government has responded to the COVID-19 pandemic with programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act are designed to help franchisees and small businesses during this time of crisis. The information below details the SBA 7(a) Paycheck Protection Program Loan, just one of the programs designed to help small businesses quickly access capital.
What is a PAYCHECK PROTECTION PROGRAM(PPP)loan?
The program provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program is retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.
What types of businesses and entities are eligible for a PPP loan?
Businesses and entities must have been in operation on February 15, 2020.
- Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
- Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
- Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
- Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier.
What costs are eligible for payroll?
- Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
- Payment for vacation, parental, family, medical, or sick leave • Allowance for dismissal or separation
- Payment required for the provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit.
- Payment of State or local tax assessed on the compensation of employees
What costs are not eligible for payroll?
- Employee/owner compensation over $100,000.
- Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code.
- Compensation of employees whose principal place of residence is outside of the U.S.
- Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response