Congress Reauthorizes the Paycheck Protection Program

On Monday, Jan. 11, the U.S. Small Business Administration and Treasury released new Paycheck Protection Program (PPP) borrower application loans for first-time borrowers, with second-time borrowers to follow on Jan. 13. Congress authorized relaunching the program with $284 billion in funding to eligible small businesses. 

The new loan forms are:

The PPP borrower application forms contain instructions on how to calculate payroll costs consistent with the guidance provided on Wednesday. In general, first- and second-time PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs (with a cap per employee of $100,000 annualized) in 2019, 2020 or the year prior to the loan. The maximum loan amount is $10 million for first-time borrowers and $2 million for second-time PPP borrowers.

Eligible physicians who are interested in applying for a PPP loan should consult with their local lenders, financial and legal advisers for a thorough understanding of the program. Click here to find more information.

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