The Paycheck Protection Program (PPP) is a loan program that originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loans are designed to keep small businesses running, employees on payroll and give employers a potentially forgivable loan to help them cover their costs. The loans are backed by the Small Business Administration (SBA). On June 5, 2020, the PPP Reform Bill was signed, relaxing some of the original loan forgiveness provisions. On December 27, 2020, the Consolidated Appropriations Act 2021 was passed to offer an extension of the Bill. Most provisions remain the same, but there are a few exceptions.
MRA has compiled a list of questions and answers about the PPP to assist HR professionals with the basic workforce requirements for loan forgiveness. For additional information, please review the U.S. Treasury FAQs found on the CARES Assistance for Small Businesses webpage.
Although MRA is monitoring and updating as new information becomes available, we strongly encourage employers consult with their CPA, tax advisor, and legal counsel for financial decisions.