Under recently enacted legislation, Congress has appropriated half a trillion of dollars to assist small businesses to keep their doors open and employees employed. Within that legislation is the Paycheck Protection Program (“PPP”). Within the PPP is a mechanism to allow forgiven for 100% of the money borrowed. Many companies have applied and received loans under the PPP already. The Program is specifically designed to assist small businesses to meet their payroll obligations for an 8-week period. Congress is currently debating whether to extend the time period during which the PPP loan proceeds can be used for payroll and other allowable expenses and qualifications for the loan forgiveness component of the Program. Until then, there are several questions and concerns related to the new laws, and the subsequent interpretations that federal agencies published related to the laws.
The SBA has now published the application form for loan forgiveness. A sample of the form is attached and can be downloaded from the SBA webpage. The application sets out the basis of loan forgiveness, and how to use those loan funds so the funds are eligible for forgiveness. The application provides instructions on filing it out. It also includes a certification to be signed by the borrower that represents the funds were used for the intended purpose. Because these laws and interpretations are coming out so quickly and subsequent interpretations are still coming out, there could be further changes to the loan forgiveness component of the PPP and the PPP itself.
For more specifics related to the Paycheck Protection Program and other new laws, please see our other Covid-19 related posts here.
Parker Schwartz has attorneys with many years of experience in handling problems for small business owners, and Lawrence Hirsch is a Certified Bankruptcy Specialist. We can help you navigate through these difficult and challenging times.
This article provides general information about certain legal topics. The law, however, changes quickly and varies from jurisdiction to jurisdiction. None of this information should be used or relied on as legal advice or opinion about specific matters, facts, situations or issues. You should consult a lawyer about your particular circumstances before you act on any of the information contained in these pages because the information may not apply to you or your problem or may not reflect current legal developments.
Please contact Larry Hirsch at (602) 282-0472 or at firstname.lastname@example.org for more information.