Hartford, CT. Updated 04/10/2020
Summary: Many small businesses should apply for these loans without delay. Business owners with questions should contact their lawyers or accountants promptly.
A Paycheck Protection Program (“PPP”) loan is designed for small businesses with less than 500 employees, sole proprietorship, independent contractors and self employed people (and some non-profit organizations).
Applications are being taken by financial institutions, including commercial banks, credit unions and other approved lenders.
The current program will cover 8 weeks of eligible expenses from the date of the loan.
Applications are simple. You will be asked to provide 941 returns for the four quarters of 2019 and the first quarter of 2020.
The loan will be for 2.5 times your average payroll. The loan may be used for payroll , employee benefits (including health insurance premiums), rent, utilities and interest on mortgage debt.
To the extent that the PPP loan proceeds are used for eligible payroll, employee benefits, rent and other allowed expenses during the 8 weeks after the loan is advance, the loan will be forgiven.
For employees that were laid-off or had hours reduced, businesses will have until June 30, 2020 to restore those employees.
The bank with whom your business has its primary banking relationship should be able to process the PPP application promptly.
Our clients that are financial institutions are working extended hours to process these applications as fast as possible.
We also recommend that businesses apply for an EIDL Grant.
Should you have questions, or need assistance, we are here for you (while working remotely).