b'LEGISLATIVEREPORTConsider Paycheck Protection Program By Ed Welch,for Financial Relief DuringPVA LegislativeCoronavirus OutbreakDirectorA n emergency loan programBusiness Administration (SBA), theThere will be minimal paperwork for small businesses, calledemergency loan program can providerequirements for a borrower.A the Paycheck Protectionup to $10 million to each qualifyingloan applicant will have to make a Program, was recently createdcompany.Not every recipient willgood faith certification that the by Congress in response to thebe able to procure the full $10 millioneconomic conditions resulting from coronavirus economic crisis.Featuresloan; it will depend on a formula thatthe coronavirus outbreak necessitate of this legislation may be attractiveinvolves multiplying the companysthe loan to support the applicants to PVA membersboth vessel andprior average monthly payroll amountcontinuing operations and that the associatethat are private entities orby 2 . funds will be used to retain workers, nonprofits.Allowable uses of the proceeds ofmaintain payroll, and make other This is a temporary program,the loan include: allowed payments.No application fee covering the period between FebruaryPayroll Costs; will be charged.An applicant will not 15 and June 30, 2020.Known as theCosts of Continuing Group Healthhave to demonstrate that it is unable Paycheck Protection Program, it isCare Benefits; to obtain credit elsewhere, nor will designed to infuse quick funds into aEmployee Compensation (includinga personal guarantee or collateral be company or nonprofit suffering fromcash tips); required.A maximum interest rate of low or no cash flow because of theRent; 4 percent will be charged.For those coronavirus outbreak.It will be fundedUtilities; and loans that are to be paid back, there is at $350 billion.Interest on Prior Mortgages or othera grace period of at least six months It is hoped that this infusion ofDebt Obligations. before payments must start.cash will enable businesses to retain orLoans will be obtained throughThis emergency SBA loan program reinstate their workers on the payrollbanks or other financial institutionsis just one provision of the CARES (even if the employees are unablequalified to work with the SBA.Act (Coronavirus Aid, Relief, and to physically come to work becauseEconomic Security Act). nof shelter-in-place orders or social distancing practices).If loan proceeds are used for allowable purposes, especially maintaining near-term payroll, aattention to detailportion of, or even all, of the loan can be forgiven.In essence, the loan can be converted into a grant.The amount of the loan that is forgiven will not be considered income to the borrower for purposes of federal tax law.A small business or nonprofit is one that employs fewer than 500 workers (permanent and part-time). In addition, some companies with multiple locations with no more than 500 workers at each location can qualify for a loan even if the total number of employees exceeds 500.Self-employed individuals and sole proprietors are also eligible. www.beurteaux.comTo be overseen by the U.S. Small APRIL 2020FOGHORN 37'