The Coronavirus Aid, Relief, and Economic Security Act Paycheck Protection Program - Bim Group

The Coronavirus Aid, Relief, and Economic Security Act Paycheck Protection Program

In response to the spread of the 2019 Novel Coronavirus (COVID-19), President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law on March 27, 2020. The CARES Act is the third phase in Congress’ response to COVID-19 following the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 and the Families First Coronavirus Response Act (FFCRA). In addition to providing emergency relief aimed at individuals and hospitals, the roughly $2 trillion CARES Act provides emergency relief to small businesses. This Advisor focuses on the Paycheck Protection Program administered by the Small Business Administration (SBA) and the Department of the Treasury (Treasury), which will undoubtedly be instrumental in ensuring the survival of small businesses during the COVID-19 crisis.

Paycheck Protection Program

The Paycheck Protection Program (the PPP) was established under the CARES Act in order provide small employers with an incentive to keep workers on their payroll during the COVID-19 crisis. Under the PPP, which is an extension of the SBA Section 7(a) loan program, qualifying small businesses are eligible to borrow up to $10 million, in order to maintain their workforce from February 15, 2020, until June 30, 2020. All or a portion of the loan may be forgiven if the borrower follows the SBA guidelines. Treasury has issued FAQs and the application form on its website. Information on the program is also available on the SBA website.

Download the full Advisor to learn more about:

  • Eligibility
  • Loan Amounts
  • Loan Forgiveness and Repayment
  • Application Procedure

Please note that due to the daily issuance of guidance from regulatory agencies, information is subject to change.

Recent Insights

August 5, 2020
Compliance Alert

Compliance Recap: July 2020

July was a busy month in the employee benefits world. The U.S. Supreme Court (Supreme Court) upheld the religious exemption and moral exemption final rules to the Patient Protection and Affordable Care Act (ACA) contraceptive mandate. The Internal Revenue Service (IRS) released the indexed 2021 ACA affordability percentage. The President signed a law extending the […]
Read more
August 4, 2020
COVID 19, Webinar

Webinar: Counting Employee Hours Under ACA Eligibility Rules in Light of COVID-19

Tuesday, August 11, 2020 2:00 p.m. ET / 11:00 a.m. PT Register Now The Patient Protection and Affordable Care Act (ACA) specifies when employers of a certain size must offer their employees health plan coverage. The ACA contains specific rules for counting employee hours when determining employer size and determining which employees must be offered […]
Read more
July 21, 2020
Affordable Care Act (PPACA)

Proposed Rules on Grandfathered Group Health Plan Coverage

In response the President’s Executive Order 13765 “Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal” issued on January 20, 2017, the Department of Health and Human Services (HHS), Department of Labor (DOL), and the Department of the Treasury (Treasury) (collectively, the Departments), issued proposed rules for grandfathered health plans […]
Read more
July 6, 2020
COVID 19, Webinar

Webinar: Recent Timeframes, Cafeteria Plan, and Account-Based Plan Relief for Group Health Plans due to COVID-19

Tuesday, July 14, 2020 2:00 p.m. ET / 11:00 a.m. PT Register Now On March 13, 2020, President Trump issued the Proclamation on Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak and by separate letter made a determination, under Section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, […]
Read more