The CARES Act, signed into law by the President on March 27, 2020, includes a program to provide immediate cash flow relief to small businesses which are suffering due to the coronavirus pandemic. The relief is provided through loans intended to bridge an employer’s future, short-term cash flow demands through June 30, 2020. In return for an employer’s general continued employment of workers and sustained wage levels through the covered period (ending June 30, 2020) and compliance with expenditure rules, the loan is eligible for forgiveness.
Specifically, the Paycheck Protection Program is an approximate $350-billion federal appropriation designed to provide that cash-flow bridge. Through this program, small businesses (generally, those with no more than 500 employees) may apply for a federal loan to fund eight weeks of certain operating costs. The loans are federally guaranteed and, under certain circumstances, are eligible to be forgiven. The loans are being administered by the Small Business Administration (SBA) and will be funded by SBA certified banks.
Wilentz attorneys have reviewed the Paycheck Protection Program legislation in detail and are available to discuss how your business may qualify. We are working with many of our business clients to address their questions and explore financing possibilities for their businesses. These questions include:
- What type of loan is available under the CARES Act Paycheck Protection Program (PPP)?
- What type of company qualifies under the PPP?
- How do I apply for a PPP loan?
- What are the main differences between an SBA Economic Injury Disaster (EID) loan and a PPP loan? Can we apply for both?
- How do I know how much my company is eligible for as a loan under the CARES Act PPP loan?
- Am I or my business required to collateralize, or otherwise guaranty, a CARES Act PPP loan?
- What are the terms of loan forgiveness under PPP?
- What if all or a portion of the PPP loan is not forgiven?
- What expenditures are covered under the PPP?
Alerts and Publications:
- Reminder: Employers have Obligations for Paycheck Protection Program Loan Forgiveness (June 3, 2020)
- Additional Guidance Now Available Concerning Paycheck Protection Program Loan Forgiveness (May 27, 2020)
- Health and Human Services Extends Deadline for Return of Provider Relief Funds by 45 Days (May 26, 2020)
- SBA Releases Paycheck Protection Program Loan Forgiveness Application and Instructions (May 16, 2020)
- PPP Loan Repayment “Safe Harbor” Clarified and Deadline Extended to May 18 (May 13, 2020)
- Employer FAQ: Will PPP Loan Forgiveness Be Reduced if an Employee Declines to Return to Work? (May 12, 2020)
- Employer FAQ: Can PPP Loan Funds Be Applied to Pay Employees Under Families First Coronavirus Response Act (May 8, 2020)
- An Alternative for Employers to Reducing the Workforce: New Jersey’s Shared Work Program (May 6, 2020)
- Paycheck Protection Program Loan Repayment “Safe Harbor” Extended to May 14 (May 6, 2020)
- Paycheck Protection Program Loan Forgiveness Now Conditioned on SBA Review (May 4, 2020)
- Limitations Imposed on Paycheck Protection Program Loans for Related Entities (May 1, 2020)
- Health and Human Services Announces Distribution Process for Second Tranche of Relief Fund Payments to Healthcare Providers under the CARES Act Provider Relief Fund (April 27, 2020)
- Additional Paycheck Protection Program Funding Approved by Congress, Awaiting President’s Signature (April 23, 2020)
- Additional Paycheck Protection Program Funding Imminent (April 22, 2020)
- Paycheck Protection Program Reporting Best Practices (April 17, 2020)
- CARES Act Provider Relief Fund Distributes $30 Billion to Eligible Healthcare Providers for COVID-19 Expenses and Patient Testing and Treatment (April 10, 2020)
- CARES Act Offers Eligible Employers Employee Retention Tax Credits and Social Security Tax Deferrals (April 9, 2020)
- Unemployment Benefits Now Available for Self-Employed Workers Under the CARES Act (April 6, 2020)
- Eligible Employers Affected by COVID-19 Can Access Employee Retention Credit Under CARES Act (April 2, 2020)
- CARES Act Establishes a Public Health Fund for Eligible Health Care Providers (March 31, 2020)
- CARES Act Modifies the Bankruptcy Code to Provide Enhanced Debt Relief to Small Businesses (March 31, 2020)
- CARES Act Expands Unemployment Insurance Benefits for Workers Affected by COVID-19 (March 30, 2020)
- CARES Act Establishes the SBA’s Paycheck Protection Loan Program—A Lifeline for COVID-19 Impacted Businesses (March 30, 2020)