The Payroll Protection Program is, in effect, a government stimulus intended to help employers keep people on the payroll during the coronavirus outbreak. Funds can also be used to cover other basic business expenses.
Many business owners will find the PPP very attractive because of its remarkably low interest rate (1%). Even better, if you verify after an 8-week period that the money was used for its primary intended purpose (paying employees), the debt is forgiven!
PPP Funds can be used for:
- Payroll costs
- Group health care benefits during periods of paid, sick, medical, or family leave, and insurance premiums.
- Interest on a mortgage obligation
- Rent, under lease agreements in force before February 15, 2020
- Utilities, for which service began before February 15, 2020
- Interest on any debt incurred before February 15, 2020
A really good rundown of the PPP in detail can be found here.