The idea is to help small businesses retain workers while the economy largely shuts down
The stimulus package passed in the Senate on Wednesday and headed for the House includes $349 billion for providing small businesses forgivable loans to bridge the economic shutdown caused by the coronavirus.
Under the bill, the Small Business Administration would provide the loans through its existing 7(a) program in amounts equal to two and a half months of payroll, with a maximum of $10 million. As long as the borrower uses the loan to cover payroll, interest on debt, rent or utilities, the loans would be forgiven. Details of the package are here.
The idea is to help small businesses retain workers while the economy largely shuts down to fight the spread of the COVID-19 disease caused by the coronavirus. That would allow companies to reopen quickly once the contagion countermeasures are lifted, while keeping the employees financially stable. Continue reading.