Paycheck Protection Program is a loan program that a business, which has experienced business concern as a result of COVID–19, can use to keep its employees paid and employed. This loan program enables businesses to cover the following eligible expenses:
- Payroll costs, meaning the sum of payments of any compensation with respect to employees that are salary, wage, commission or similar compensation; payment of cash tip or equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for dismissal or separation; payment required for the provisions of group health care benefits, including insurance premiums; payment for any retirement benefit; or payment of State or local tax assessed on the compensation of employees. The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage commission, income net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in 1 year, as prorated for the covered period.
- Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
- Employee salaries, commissions, or similar compensations;
- Payments of interest mortgage payments (which shall not include any prepayment of or payment of principal on a mortgage obligation);
- Rent (including rent under a lease agreement)
- Utilities; and
- Interest on any other debt obligations that were incurred before February 15, 2020.