The CARES Act
The CARES Act, signed into law on March 27, 2020, includes a program (Paycheck Protection Program or PPP) enabling the Small Business Administration (SBA) to provide prompt cash flow relief to small businesses which are suffering due to the coronavirus pandemic. The relief was provided through forgivable loans to enable employers to continue employment of their workers and sustain wage levels through a specified covered period ending by December 31, 2020. As the PPP is no longer making loans at present, most borrower activity is focused on submitting applications for forgiveness. Borrowers whose loans are over $2 million are also preparing for promised loan audits to verify their need for their loans.
Wilentz attorneys have reviewed the Paycheck Protection Program legislation, its amendments and the updates and related guidance from the SBA 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, audit and forgiveness possibilities for their businesses, including:
- During which period of time must I use my PPP loan in order to qualify for forgiveness?
- What is the result to the Borrower if less than the required percentage of the Borrower’s PPP loan proceeds is used for payroll costs?
- What types of non-payroll expenses may be paid with PPP loan proceeds?
- What is the impact to forgiveness if a Borrower finds that an employee is either unable or unwilling to return to work?
- Is a Borrower able to terminate employees for cause?
- Must a Borrower maintain the employment of all workers through the end of 2020?
- When must a Borrower apply to their lender for forgiveness?
- For PPP loan amounts that are not forgiven, what are the repayment terms a Borrower can expect?
- How should the Borrower respond to an audit request?
Alerts & Publications
Jan 15 2021Paycheck Protection Program Extended for Second Round of Financing 01.15.2021The Consolidated Appropriations Act (the “CAA”) signed into law on December 27, 2020 has authorized an additional round of Paycheck Protection Program (“PPP”) loans (the “Round 2 L…
Oct 07 2020New Guidance from Small Business Administration on Purchase and Sale Transactions Involving PPP Borrowers 10.07.2020Effective October 2, 2020, the Small Business Administration (SBA) promulgated a Procedural Notice identifying the circumstances under which transfers of ownership or assets of companies that have received Payc…
Jul 06 2020Law Extends Paycheck Protection Program Application Deadline to August 8, 2020 07.06.2020On July 4, President Trump signed into law recently passed legislation extending the deadline for applications for new Paycheck Protection Program (PPP) loans from June 30 to August 8, 2020. Small businesses, i…
Jul 01 2020Paycheck Protection Program Application Deadline Extended to August 8, 2020 07.01.2020On the evening of June 30, 2020, Congress passed legislation extending the deadline for applications for new Paycheck Protection Program (PPP) loans from June 30 to August 8, 2020. President Trump is expected t…
Jun 11 2020Additional Provider Relief Fund Distributions Announced by HHS to Eligible Medicaid & CHIP Providers 06.11.2020On June 9, 2020, the U.S. Department of Health and Human Services (HHS) announced that it will make additional distributions from the Provider Relief Fund to eligible Medicaid and Children's Health Insurance Pr…
Jun 05 2020Paycheck Protection Program Flexibility Act Extends Loan Forgiveness Period and Additional Benefits 06.05.2020By voice vote on June 3, 2020, the United States Senate passed H.R. 7010, the Paycheck Protection Program (PPP) Flexibility Act of 2020 (the Act) which had been approved by the House of Representatives last wee…