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Payroll protection for small businesses
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Posted on Apr 16 2020
Small businesses may be able to avoid laying off their employees through the Paycheck Protection Program of the Small Business Administration.
Delegate Gregorio Kilili C. Sablan (Ind-MP) said in his e-newsletter that the program would help small businesses avoid layoffs.
“Unemployment benefits provided in the CARES Act have not yet begun in the Marianas, but another alternative for small businesses to avoid layoffs altogether is the Act’s Payroll Protection Program,” he said.
Sablan said that eligible employers who keep their employees on payroll during the COVID-19 emergency can receive a federally guaranteed loan to cover 100% of the cost, and those who maintain their payroll for up to eight weeks can get the loan converted to an outright grant.
According to SBA’s website, loans will be forgiven provided that the business keeps all employees on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Loan payments will also be deferred for six months, and no collateral or personal guarantees are required.
“Keeping employees on payroll this way will make it easier to get businesses up and running again once the health crisis abates,” Sablan said. “…Businesses employing CW workers will not jeopardize their immigration status, if the workers are continuing to be paid.”
