Paycheck protection program? ?
can a small business apply for the loan even if there are some employees on unemployment due to the corona virus?
My uncle owns a burger shop but one of his employees is currently pregnant and is now on unemployment until things blow over. He is worried that he cannot file for the loan if she stays on unemployment. Any advice I could give him? He’s not tech savvy so I’m trying to do the research for him lol.
- random_manLv 72 months ago
A couple of things here. One is that it's not appropriate for someone who cannot work to be on unemployment. She should be on FMLA.
Second, a business can still apply for the Paycheck Protection Program even if they have employees who are laid off. The PPP will cover "average" payroll costs for an 8-week period. If their payroll is reduced by having less workers, the amount of the loan that is forgivable is reduced by that amount, but it's pro-rated, so the business won't lose out entirely.
Here's a link for more information: https://home.treasury.gov/system/files/136/PPP--Fa...
Here's the application: https://www.sba.gov/sites/default/files/2020-03/Bo...