HARRISBURG – A new loan program offered by the federal government will help businesses, employees and self-employed individuals that have been impacted by the COVID-19 public health emergency, according to Senate Appropriations Chairman Pat Browne.
The new Paycheck Protection Program will offer loans to cover payroll costs, mortgage interest, rent and utility costs over an eight-week period for businesses affected by coronavirus mitigation. The loans can be forgiven by the federal government if certain conditions are met.
“It is critically important that we continue to provide resources to businesses and employees designed to help them through the disruptions that the COVID-19 emergency has caused,” Senator Browne said. “Pennsylvania will continue to work with our federal partners to help provide relief to those affected by this crisis.”
Businesses must maintain their number of staff and level of payroll and quickly rehire any recently displaced employees in order to qualify for loan forgiveness.
No more than 25 percent of the loan may cover anything other than payroll costs, and loan payments will be deferred for six months for any amount that is not forgiven.
The program is open to small businesses, veterans organizations, sole proprietorships, self-employed individuals and independent contractors, so long as each entity has 500 or fewer employees.
The application period for small businesses and sole proprietors will open on April 3. Self-employed individuals and contractors can apply starting on April 10.
More details about the program are available here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.
CONTACT: Matt Szuchyt- Mszuchyt@pasen.gov