Bank of America is the first major financial service institution to start implementing the federal Paycheck Protection Program.The program is apart of the Coronavirus Aid, Relief and Economic Security (CARES) Act which was approved by Congress in late March. The CARES Act was created to support Americans during the current COVID-19 pandemic.
The Paycheck Protection Program is designed to supply more than $300 billion in forgivable loans to small businesses across the country. Bank of America began processing applications from its 1 million small business clients.
“As their bank and their lender, we have knowledge about these clients that will help ensure a quick application process. That was our experience this first day,” said Bank of America Michigan Market President Matt Elliott.
The demand for processing applications proved to be so great that Bank of America opened up assistance to small business clients who have a transaction account but have not established a credit relationship.
“My teammates and I are proud of the role we are playing in the war on the virus that the world is waging. Our job is to take care of our teammates – and we are – and to help the clients and communities we serve get through this,” said Elliott.
According to the US Department of Treasury, funds from the Payment Protection Program can be used for:
- Payroll costs, including benefits
- Interest on mortgage obligations, incurred before February 15, 2020
- Rent, under lease agreements in force before February 15, 2020
- Utilities, for which service began before February 15, 2020
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