On April 3, the federal government launched a heretofore unprecedented program to funnel money to U.S. small businesses hit hard by the coronavirus pandemic.
The Paycheck Protection Program (PPP) is a $350 billion segment of a $2 trillion federal stimulus package signed into law under the CARES Act earlier this month. Administered by the Small Business Administration (SBA) and processed through financial institutions (FIs), including banks and selected FinTechs, the program offers small- to medium-sized businesses (SMBs) loans worth twice their monthly payroll expenses. Those loans do not have to be repaid provided SMBs keep their employees on the payroll (or rehire employees that have been let go).
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