THIS BILL IS UNDER CONSIDERATION IN DC AND HAS NOT YET BEEN PASSED
Things may change as they negotiate the specifics of this 247 page bill, but currently what the legislation proposes is to provide loans to businesses to first help pay for payroll to keep employees on staff and provide for health insurance payments if the employer had a plan in place before the closure. Secondly it would help pay for mortgages, rent or utilities for the business owner. The business would not be required to stay open to keep their employees on payroll.
The loans may be forgiven under certain circumstances and it would be almost expected that they would if the employer follows all rules of the program. These funds would replace unemployment, and the business owner would pay his employees now to make sure they were available to work immediately when times improve. Currently, it applies to businesses with 500 or less employees and would also provide for sole proprietors and self-employed individuals. The loan amount would be based on your last 12 months’ payroll and certain expenses and be a monthly amount based on certain calculations not yet finalized to a maximum of $10 million over the covered period. More details to follow!
The bills text says it is for payroll support, including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits
during those periods; and employee salaries and wages and mortgage payments. Also rent (including rent under a lease agreement); utilities; and any other debt obligations that were incurred before the covered period.
