The SBA and Treasury moments ago released updated information on the new Paycheck Protection Program created by the CARES Act.  The program is specifically designed to help small businesses (less than 500 employees) keep their workforce employed.  The program provides a loan to be used for specified operating expenses for the eight weeks following the date of loan origination.  If employers comply with the program, the entire principal of the loan will be forgiven and will not be subject to income tax.  Other terms of the loan include: interest rate of 0.5%; maturity of two years; first payment deferred for six months; 100% guaranteed by SBA; no collateral; no personal guarantees; and no borrower or lender fees payable to the SBA.

For more information from the Treasury, please click here.