There have been a lot of questions in regard to the coronavirus CARES Act stimulus package. Specifically, many businesses and self-employed people are wondering if they can take advantage of the Paycheck Protection Program.
The CARES Act was enacted recently in response to the effects the COVID-19 pandemic has had on business owners, freelancers and self-employed. The CARES Act dedicates $349 billion dollars to support businesses during the pandemic. Businesses with fewer than 500 employees will generally qualify for the Paycheck Protection Program. This includes single-member LLCs, partnerships, and sole proprietors. The maximum loan amount depends on your payroll expenses. For most, the maximum loan amount available will be 2.5 times the average monthly payroll cost over the past year. For instance, if your average monthly payroll is $10,000, then you’d be eligible for $25,000 under the Paycheck Protection Program.
This episode of All Up In Yo’ Business details the Paycheck Protection Program and the options available for businesses under the CARES Act.
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