Be ready if Congress adds new funds to PPP business relief program

These are strange days, indeed. Aside from its human cost, the COVID-19 pandemic is affecting virtually every business in New Mexico, with some industries being hit harder than others. In response to the emergency public health orders issued by states, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion package designed to provide relief to individuals and businesses.

Included in the CARES Act was the Paycheck Protection Program (PPP). Congress set aside $350 billion for the PPP to provide relief to small businesses—those with fewer than 500 employees—and their employees. If your company missed out on the first round of help, which was quickly exhausted, read on to learn how to be ready in case Congress replenishes the funding.

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The PPP's purpose was to keep people employed through the crisis by giving employers funds to cover payroll expenses. As soon as the pandemic began affecting commerce, we saw reductions-in-force and reductions-in-hours in large waves.

Seeking to avoid record unemployment figures, Congress structured the PPP so that if a business accepted a loan and maintained current staffing levels, the loan will be forgiven. There were of course some caveats and caps written into the PPP, but I heard from business owners who avoided layoffs because of the loans.