The impact of the CCP (Chinese Communist Party) Virus not only affects health but the economy, and Congress passed a law supporting small businesses, called the Paycheck Protection Program.
This bill will serve to “preserve our nation’s economic engine,” according to Sen. Marco Rubio (R-Fla.), in an article published by Fox Business.
The bill includes a $350 billion budget to provide cash to businesses with fewer than 500 workers, in order to preserve those jobs.
Among other provisions, requirements for such loans will be more relaxed, have a full federal guarantee, and a wide range of applications.
They will be able to be used to pay cash wages and tips, mortgages, rent, utilities, and insurance premiums, and will be fully forgivable, meaning that the money does not have to be repaid, according to Rubio.
The goal is to avoid a break in the relationship between the employer and his employees, which would save startup costs and other impediments to businesses when hiring and training new employees, in case those they employ were to leave.
Moreover, Paycheck Protection Program contributions are retroactive to Feb. 15, 2020, so that workers who have already been laid off are called back, and those who cannot return anyway receive financial assistance.
“Coronavirus relief will be a simple process for small business owners,” U.S. Treasury Secretary Steven Mnuchin announced on March 30.
He said documents and instructions for obtaining relief would be available on the Small Business Administration’s website for business owners starting March 30.
President Donald Trump signed $2.2 billion in economic relief legislation on March 27 to help workers and businesses affected by the pandemic in Wuhan, China.
“And this will deliver urgently needed relief to our nation’s families, workers, and businesses,” President Trump said during the signing ceremony in the White House Oval Office.