Under the US Cares Act, the Paycheck Protection Programme is a loan program or funding extended to the small businesses that offer to forgive loans if the companies keep all its employees on payroll for eight weeks — and that money can be used for managing employees rent, mortgage, etc.
RAJAT PRAKASH, Managing Partner, Athena Legal while speaking to Business Insider on this issue, shared that, the loans sanctioned under the Paycheck protection programme require no fee, guarantee or collateral but covers all the expenses for six months from starting date. But major discretion here is that these loans can be forgiven - which means they convert to non-taxable grant. This sets it apart from the ones given in India. The main requirement for the kind of loans in the US is that 60% of the funds must be used for payroll & employee benefits.
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