Paycheck Protection Program and Economic Injury Disaster Loan Funds Exhausted

Paycheck Protection Program and Economic Injury
Disaster Loan Funds Exhausted

By Ivan H. Golden

A $349 billion government loan fund designed to help small businesses and their employees weather the COVID-19 pandemic has run out of money, the Small Business Administration (“SBA”) announced Thursday.

The Paycheck Protection Program (“PPP”), a centerpiece of the $2.2 trillion federal stimulus bill, provides low-interest, forgivable loans of up to $10 million to businesses with 500 or fewer employees. The funds must be used to maintain payroll;  for mortgage interest, rent, and utilities; and for certain other purposes. Businesses that use the loans solely to retain employees and pay other covered expenses are eligible for loan forgiveness, with the proceeds excluded from gross income.

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