• Laid-off employees must be rehired by June 30, 2020, for companies to recoup, in the form of loan forgivenesses, wages paid using borrowed funds.

  • A Paycheck Protection Program loan can cover expenses incurred between Feb. 15, 2020, and June 30, 2020.

  • Are There Any Flies in the Paycheck Protection Program Ointment? 

    Unfortunately, there are several. The Paycheck Protection Program requires the participation of SBA-approved lenders — typically banks and credit unions — to front the loans, whose repayment, it bears repeating, is fully guaranteed by the SBA. 

    Meanwhile many would-be lenders complain of an enrollment rush that could overwhelm banks’ capacity to process loan applications.

    How is the Paycheck Protection Program Supposed to Help the US Economy?

    Paycheck Protection Program loans are intended to provide economic benefits to communities. The Cares Act emphasizes that the loans are primarily meant to help enterprises keep workers on their payrolls. Labor Department data shows initial unemployment claims have skyrocketed in response to a global business freeze caused by the pandemic.

    Other sanctioned uses for these emergency loans include:

    • Parental, family, or sick leave

    • Rents

    • Retirement benefits

    • Utilities