Paycheck Protection Program:
What you need to know about
paying back the loan
JACK MEADOWS
This article will focus on aspects of the Paycheck
Protection Program relevant to seasonal employers, such
as those in the food and agriculture industry. Additionally,
this article will discuss tips for how borrowers can
maximize the forgiveness amount of their loans, subject
to further guidance from the SBA. Because the program
has been available since April 3 for small businesses and
since April 10 for independent contractors, this article
will not focus on eligibility questions, affiliation rules, or
the application process; however, please contact us if you
have questions about these or any other topics.
Brief Overview of the Paycheck Protection Program
The Paycheck Protection Program (PPP) is a program
implemented through the CARES Act, which is intended
to help small businesses keep their employees paid during
the coronavirus pandemic. Borrowers can use PPP loans
for payroll costs as well as for other eligible expenses,
such as rent, utilities, and interest on secure loans. One
very important aspect of a PPP loan is that it is potentially
forgivable, in whole or in part.
Generally, all businesses under 500 employees, as
determined by the Small Business Administration’s
affiliation rules (unless specifically waived in the CARES
Act), are eligible for the PPP. This includes independent
contractors and sole proprietors. Additionally, businesses
can qualify if they meet the SBA’s small size standard for
their specific industry based on number of employees or
annual receipts.
In addition to meeting the above eligibility requirements,
borrowers under the PPP must certify in good faith that
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