SC information letter #20-28

Abstract

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in response to the COVID-19 pandemic. As part of the relief provided, the Paycheck Protection Program (PPP) was established to provide loans to small businesses for the purpose of paying payroll costs (e.g., wages and benefits) and occupancy costs (e.g., mortgage interest, rent, and utilities) to keep the businesses operating and employees on the payroll. The loan can be forgiven, in whole or part, if the business meets or exceeds certain thresholds related to payroll and occupancy costs. Any portion of the PPP loan that is not forgiven must be repaid over two years at 1% interest.