Effective April 3, the White House Coronavirus Task Force (working with the US Treasury), is introducing a $349 billion Paycheck Protection Plan.
This plan is designed to retain employees through eight weeks of payment protection given to small businesses through standard lending institutions approved by the White House.
Businesses with contracted employee numbers under 500 can apply for a loan based on annual income up to $100,000 per employee.
Eligible businesses include “nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees,” reads the fact sheet provided by the Treasury.
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“Please bring your workers back to work if you’ve let them go,” said Treasury Secretary Steve Mnuchin, during the White House press conference. “You have eight weeks, plus overhead.
“Direct deposit of the funds will be processed immediately. Within two weeks, the first money will be in people’s accounts.”
There are check-by-mail options, but Mnuchin urges folks to give their direct deposit information. “In this environment, we don’t want to send checks.”
Interest rates applied on the loans will be paid for by the federal government, rather than the responsibility of the borrower.
The treasury also announced that the Employee Retention Credit is now up and running, which allows employers that have retained their employees through the crisis to apply for a $5,000 credit immediately.
To apply for the Paycheck Protection Plan, head to Small Business Association for a full list of certified lenders.