Paycheck Protection Loan (7a loan) was created by the recently passed CARES Act. The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.  If all employees are kept on the payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.

Small businesses and eligible nonprofit organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

For this loan you will apply through a local lender; however, they may be awaiting further guidance on program administration.

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The CARES Act:

• Provides direct assistance to individuals and families that need it most. Under the bill, a typical middle-class family of four would get $3,400 to help them meet their daily expenses;
• Includes emergency funds for food and nutrition programs so families can continue to get that help if they need it;
• Provides immediate assistance to child care providers to prevent them from going out of business and supports child care for families, including for healthcare workers, first responders, and others playing critical roles during this crisis;
• Provides cash-flow assistance to small businesses through federally-guaranteed loans, with certain expenses eligible for forgiveness if employers maintain their payrolls through this emergency;
• Creates a temporary pandemic unemployment assistance program to give assistance to workers who aren’t normally eligible for unemployment benefits, such as the self-employed or independent contractors;
• Ensures that testing and the eventual vaccine for coronavirus patients will be covered by private insurance;
• Includes $100 billion in support for hospitals and health care providers, and provides flexibility for them to receive both prospective payments and reimbursement for costs associated with coronavirus, including lost revenues;
• Gives health care providers more capabilities to offer telehealth services;
• Provides an additional $16 billion to procure personal protective equipment, ventilators, and other medical supplies for federal and state response efforts;
• Allows the Secretary of Education to defer student loan payments, enables students who were forced to drop out of school due to coronavirus to keep their Pell Grants, and gives colleges and universities the flexibility to continue work-study payments to students who cannot work due to coronavirus closures;
• Provides funding for elementary and secondary schools that can be released quickly to states to help schools respond to coronavirus and related school closures, including immediate needs of students and teachers, improving use of education technology, supporting distance education, and making up for lost learning time; and
• Stabilizes major sectors of the economy without putting taxpayers on the hook for giant bailouts.

US Small Business Administration

Missouri Department of Health and Human Services

MO Chamber of Commerce

Small Business Development Center

What Employers Need to Know About the
Families First Coronavirus Response Act Missouri Department of Health and Human Services