While we all wait for the final regulations over the next few weeks most employers in the United States will be seeking a loan under the Paycheck protection program.
Earlier this week my readings indicated limitations for companies that have already laid off workers. This was not covered in my readings this morning.
The regulations are still to be written but the loan decisions are at the bank level not the SBA level.
Summary of Paycheck protection program:
What follows below is a summary of the stimulus package as it relates to small business. Small business is defined as less than 500 employees.
Quick no noes:
Bars companies from interfering in an effort by employees to form a union
Paycheck protection program:
Companies must certify that:
Funds used to
Note: Principal payments on loans cannot be paid from the loan proceeds.
During restricted period no officer / non Union employee whose total compensation exceeds $425,000 in 2019 may be paid more than their 2019 compensation.
Special rules for those making over $3 million.
Total compensation includes: Salary / bonus/ stock award and other financial benefits.
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