Local businesses kept afloat with PPP loans – Royal Examiner

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When Covid arrived in 2020, the United States federal government implemented the Paycheck Protection Program (PPP), a $953 billion business loan program established by the Coronavirus Aid, Relief, and Economic Security Act ( CARES Act).

The Paycheck Protection Program was intended to help businesses, self-employed people, sole proprietors, some nonprofits and tribal businesses continue to pay their workers. The United States Small Business Administration was the entity in charge of the program and coordinated with local banks across the country to issue the loans.

Under the program, eligible businesses could apply for low-interest private loans to cover payroll and certain other costs. The PPP loan, around 2.5 times the applicant’s average monthly salary costs, could also be used to cover rent/lease, mortgage interest and utilities. Some companies were able to get a second draw, usually equal to the original amount.

Under the provisions of the CARES Act, businesses can obtain partial or full loan forgiveness, provided the entity maintains stability in its number of employees and salary levels.

To qualify for loan forgiveness, borrowers must have used the money for designated expenses, and they must also apply for forgiveness. Otherwise, the full principal amount and any accrued interest must be repaid.

More than 11 million businesses have applied for PPP loans and, as of February 20, 2022, total loan forgiveness, according to the Small Business Administration:

Discount based on the number of loans
Total PPP volume (2020-2021) 11,427,757
Pardon applications 9,758,832
Payments 9,679,431

Discount by dollar amount
Total PPP volume (2020-2021) $789,776,462,485
Pardon applications $703,344,518,431
Payments $695,581,269,282

Dozens of businesses in Front Royal and Warren County applied for and received loans to pay staff and stay afloat. Loan amounts ranged from several thousand dollars to nearly $3.3 million. The SBA said 16,046 PPP loans were issued to businesses in Virginia, with a total of 611,235 jobs saved. Officials say all loans of $2 million or more will automatically be audited.

You can find information on loans at SBA Paycheck Protection Program Data Search – FederalPay


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