Small Businesses May be Eligible for Payroll-Protection Loans During Pandemic
The Coronavirus Aid, Relief and Economic Security (CARES) Act offers help to businesses in the form of payroll-protection loans for qualifying organizations with fewer than 500 employees. In an interview with SHRM, Samantha Monsees explained the eligibility requirements for these loans and described some of the details of the loan program. Samantha also noted that there is a forgiveness provision that employers should be aware of, which she described as follows: “the amount spent on payroll costs, rent and utilities in the eight weeks following the loan origination will be forgiven so long as the employer does not reduce its full-time staff or reduce wages by more than 25 percent within that eight weeks.”
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