The Keeping Workers Paid and Employed Act is Division A of the Coronavirus Aid, Relief, and Economic Security Act, which is currently awaiting final voting procedures. The goal of the Act is to prevent workers from losing their jobs and small businesses from going under due to economic losses amidst the coronavirus pandemic. View a one-page summary of the Act here.
What can you do now?
If you own a small business employing less than 500 people and plan to maintain your employee count for the next 8 weeks, the biggest takeaway you can act on right now is to contact your banker and ask if you qualify for a loan through the Paycheck Protection Program.
The Keeping American Workers Paid and Employed Act:
- Creates the Paycheck Protection Program, a nearly $350 billion program which provides eight weeks of cash-flow assistance to small businesses through 100 percent federally guaranteed loans to employers who maintain their employee count during this emergency. Funds through the Paycheck Protection Program may be used to cover payroll costs, paid sick leave, employee salaries, health insurance premiums, mortgage payments, and other debt obligations to small businesses who have been negatively impacted by COVID-19.
- Allows for expedited access to capital by establishing a $10 billion program for small businesses who have applied for an EIDL loan through the Small Business Administration (SBA), by requesting an advance of up to $10,000 on the loan to provide paid sick leave to employees, maintain payroll, and pay other debt obligations.
- Requires the SBA to pay all principal, interest and fees on all new and existing SBA loans including 7(a), Community Advantage, 504, and Microloan programs for 6 months, and provides $17 billion for this purpose.
For more information on ways small businesses can continue operations, visit our COVID-19 Resources Center.