by Michael Scholl
Exactly one week ago, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. This is the third piece of legislation passed by Congress and signed into law by the President designed to provide relief to individuals, families and businesses during the COVID-19 pandemic. Since that time, I have received questions from many of you asking about how you, your small business and your employees can directly benefit from the CARES Act.
I’d like to first call your attention to this resource page, which provides an overview of the CARES Act provisions that most likely apply to you as a small business owner and employer. Today, I specifically want to focus on the Paycheck Protection Program (PPP) provision of the CARES Act. This provision seems to be getting the most attention as I know some of you have already completed your PPP application.
Overview of the Paycheck Protection Program (PPP)
- The PPP Provides $349 billion in forgivable loans to small businesses so they can continue to keep their staff employed.
- The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
- Employee and compensation levels are maintained.
- Starting April 3, small businesses can apply and receive loans at their local Small Business Administration (SBA) lender.
- The loan amounts will be forgiven as long as:
- A detailed FAQ published by the Treasury Department can be found here.
- The two-page PPP application can be found here.
- The Treasury Department has a page dedicated to PPP here.
As I have said in the past, with any new law, the application and impact on individual businesses can vary, so we encourage you to seek expert guidance to determine how it may impact your business and valued employees. As we stand together navigating these uncertain times, we are committed to keeping you informed.
Michael Scholl is the Chief Compliance Officer for Starkey. He provides leadership for the assessment, planning, development, implementation, and evaluation of the enterprise global compliance program. He works closely with teams across the organization to identify, mitigate, and remediate risk – all while promoting Starkey’s overall culture of compliance. In addition, Michael Scholl serves as the Executive Vice President of Corporate Relations. In this role, he leads Starkey’s government relations and public policy efforts related to state, federal, and global legislative and regulatory priorities, as well as, Starkey’s efforts to build strategic partnerships with non-profits, corporations, and consumer organizations within our local community and beyond.
