The COVID-19 crisis hit the market hard when stay-at-home and quarantine orders were introduced, shuttering many businesses essentially overnight. Even those that were able to stay open had to scramble quickly to meet new market needs and follow new regulatory guidelines. Others have had to layoff or furlough staff, or reduce their wages or hours.
The CARES Act was passed to mitigate that impact, including a provision called the Paycheck Protection Program. This program provides businesses with up to $10 million primarily to cover paychecks for staff and is a 100% forgivable loan if certain requirements are met.
Rick Waechter, CFP® and founder of Old Peak Finance, shares the details of those requirements here:
There has been a lot of demand for the Paycheck Protection Program, as would be expected, so we recommend business owners who qualify apply though their business banking relationship as soon as possible. If you have questions about how this impacts your financial strategy as a business owner, contact us. We are here for you.