Payroll protection loans still available for businesses; eligible for forgiveness

18 Jul 2020

Business, Economic Development, Government, Community

In response to the COVID-19 pandemic’s impact on businesses, Congress created the Paycheck Protection Program (PPP) through the Small Business Association (SBA). The program provides incentives for small businesses to keep workers on their payroll by offering low interest, no fee loans. The PPP program application period has recently been extended through Aug. 8.

For those who already have a loan, forgiveness is an option.

According to the League of Minnesota Cities, the loan will be fully forgiven if funds are used for payroll costs, interest on mortgages, rent and utilities but at least 60% of the forgiven amount must have been used for payroll.

“As long as you keep it to that then you can fill out an application for forgiveness and you give it to the bank and the bank is supposed to be able to submit it to the SBA,” said Carol Anderson, director of Morrison County Development.

Read the full article here.