The City of Falls Church Economic Development Office issued a call today to encourage small businesses and nonprofits in the City to apply for the federal Paycheck Protection Program, which is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program has a funding cap, so businesses should apply as soon as possible, it noted.
Business and non-profit owners are urged to familiarize themselves with the PPP on the Department of the Treasury’s website and then contact their banker, as the application is completed through the bank.
Applications for small businesses and sole proprietorship businesses can be submitted starting tomorrow, and independent contractors and the self-employed applications can be submitted starting April 10.
The CARES Act was passed and signed on March 27. It includes key provisions to support the small business community including the Small Business Paycheck Protection Program (PPP). The PPP will provide cash-flow assistance through loans that cover up to 2.5 months of payroll costs, not to exceed $10 million. The funds must be used to retain/hire back employees, cover rent or mortgage interest, and pay utilities.
A key piece of this legislation is that some or all of the loan can be forgiven if the funds are used as agreed upon and basically converted into a grant. The grant is available to small businesses and charitable nonprofits (501(c)3 organizations) up to 500 employees.
The legislation also provides for Small Business Debt Relief, Economic Injury Disaster Loans and Emergency Economic Injury Grants, expanded unemployment insurance programs, Small Business Counseling, Small Business Contracting, and Small Business Tax Provisions.