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

July 29, 2021
News

No Surprise Billing Interim Final Regulations, Part 2

3-MINUTE READ On July 1, 2021, the U.S. Departments of Health and Human Services, Labor, and Treasury, along with the Office of Personnel Management (collectively, the Departments), issued an interim final rule (IFR) to explain provisions of the No Surprises Act (the Act) that passed as part of sweeping COVID-19 relief legislation signed in December […]
Read more
July 27, 2021
Webinar

Webinar: The No Surprises Act Interim Final Rules

Tuesday, August 10, 2021 2:00 p.m. ET / 11:00 a.m. PT Register Now On July 1, 2021, the U.S. Departments of Health and Human Services, Labor, and Treasury, along with the Office of Personnel Management (collectively, the “Departments”), issued an interim final rule (IFR) to explain provisions of the No Surprises Act (the Act) that […]
Read more
July 27, 2021
Compliance Alert, News

June Compliance Recap

5-MINUTE READ June 2021 was not a busy month in the benefits industry, largely due to the summer vacation season and the Independence Day holiday. Importantly, however, the U.S. Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act (ACA). Additionally, the IRS unveiled a tool to assist families in taking advantage […]
Read more
July 26, 2021
News

IRS Issues Draft Form 1095-C

The Internal Revenue Service (IRS) recently issued the 2021 Draft Form 1095-C, which is required to be filed with the IRS by applicable large employers (ALEs), to report the offer of health coverage to employees. New Codes An ALE that offers an individual coverage health reimbursement arrangement (ICHRA) can now use two previously-reserved codes in […]
Read more