As part of the CARES Act signed by President Trump on March 27, the Small Business Administration is directed to administer a new Paycheck Protection Program loan to facilitate the delivery of $349 billion.
There has been a lot of attention to the PPP program because it includes terms to forgive the loan if the proceeds are used for eligible business expenses, primarily payroll and payroll costs such as benefits. The intention of the program is to provide funding to businesses impacted by COVID-19 so that they can avoid laying off employees.
The program funds will be delivered through the Farm Credit associations local banks and credit unions. The SBA is still working out details for this new program so much of this is still in draft form. Read more.
