Paycheck Protection Program supports small businesses

Gov. Bill Lee continues to provide updates on Tennessee’s efforts regarding COVID-19 relief.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities, according to Gov. Bill Lee.

The program authorized $350 billion in fully forgivable loans to help small businesses maintain payrolls during the coronavirus pandemic. The program went live on Apr. 2, 2020 and is being run through local financial institutions. Additional information can be found here.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

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