Small businesses will be able to benefit from 380,000 of the $ 484 billion in the new economic aid package signed by US President Donald Trump on Friday, after Congress yesterday gave the green light to the legislation.
The new package allocates $ 321 billion to the Wage Protection Program (PPP) – which gives access to loans to small businesses – as well as another $ 60 billion to an economic relief fund in the event of bankruptcy of those companies.
To date, more than 1.5 million firms have received PPP grants, according to the US Small Business Administration. (SBA, in English), until the 349,000 million with which the program began in March were exhausted, leaving thousands of companies without help.
On its website, the SBA details that any loan framed in the PPP “may be completely forgiven if the funds are used to pay payroll, mortgage interest, leases and public services”, but, in order to apply for this pardon, They allocate 75% of the money received to workers’ wages.
These loans do not require any type of collateral or guarantee, and their forgiveness is based on the company retaining or quickly re-hiring employees and maintaining pre-crisis wages.
The more the wages or the number of full-time employees are reduced, the more of the loan the employer will have to repay.
In case of having to return any sum, the debtor will have a period of two years to deposit the payment at an interest rate of 1%.
Apart from aid to companies, the legislation approved yesterday allocates $ 75 billion to hospitals and $ 25 billion to increase the number of coronavirus tests that are carried out nationwide.