Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 and it allocated $669 billion in funds to assist 5.5 million small businesses through the Paycheck Protection Program (PPP). It enabled businesses to borrow up to $10 million under the Small Business Administration (SBA) 7(a) loan program. The PPP allowed loaned funds to be forgiven if they were used to cover payroll, mortgage interest, rent and certain utilities during the covered period, and within the correct percentages.
The legislation was passed quickly and left many open questions, so the SBA and Treasury have issued interim regulations and FAQs throughout the year about the loan application and loan forgiveness application processes. Unfortunately, this has caused considerable confusion and frustration among business owners who are trying to adhere to guidance while keeping their companies afloat.
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