Paycheck Protection Program Special Report
CARES Act Helps Small Businesses Stay Open and Keep Employees With the Paycheck Protection Program (PPP)
Small businesses severely impacted by coronavirus. There are more than 30 million small businesses in the U.S. that employ roughly 120 million people. The shelter-in-place mandates by many states and other jurisdictions due to the COVID-19 outbreak have posed an economic hardship on many of these businesses. Although a nationwide call to stay at home has not been declared as of April 1, estimates are that roughly 75 percent of the nation, or at least 250 million people, were under orders to shelter in place. The declarations have put a significant portion of small employers, independent contractors, the self-employed and nonprofits out of work. Many have had to temporarily close, laying off or furloughing staffs, which has resulted in unemployment claims soaring nationwide. Without income many of these businesses will have a hard time covering rent and mortgage payments, which will negatively impact lenders and property owners over the coming months. The recently passed CARES Act contains provisions to help small businesses.