One of the landmark protections enacted by the Coronavirus Aid, Relief and Economic Security, or CARES, Act on March 27 was the Paycheck Protection Program, or PPP. Under the program, small businesses (e.g., those with fewer than 500 employees) — and certain other businesses in specific industries — are eligible to receive loans that will be fully forgiven if utilized under the terms of the program, including applying at least 75% of the funds received from the loans to payment of payroll expenses.
The loans may also be used for payment of interest on mortgages, rent and utilities. The PPP loans are capped at $10 million for each small business. The Small Business Administration, or SBA, administers the PPP with support from the U.S. Department of the Treasury.