Client Alert
(by Moore Capito, Christian Farmakis and Andrew Terranova)
On April 3, 2020, lenders began accepting and issuing Paycheck Protection Program loans (PPP Loans) to qualifying small businesses. In less than two weeks, the approximately $350 billion appropriated to the PPP Loans were fully depleted. Over the past two weeks, we have received questions related to the application process, appropriate use of loan proceeds during the covered period, calculating the level of loan forgiveness, and the possibility of further funding.
We understand that no two businesses are the same and that’s why we are uniquely tailoring our approach to acquisition and utilization of the PPP Loans to suit your needs. If your business received a PPP Loan, we are prepared to provide counsel to your business on how loan proceeds may be allocated.
Yesterday, the U.S. Senate passed a major enhancement to the PPP Loan program. While action by the U.S. House of Representatives is not expected until Thursday, we fully expect $310 billion additional dollars to be added to the PPP Loan program. Therefore, it is important for qualifying businesses that missed out on the first round of funding to be prepared to act quickly. The first step is ensuring your application is properly completed and submitted to an SBA-approved lender. The application can be found here and SBA-approved lenders can be found here. We have counseled dozens of clients on the application process and we are happy to assist your business as well.
If you have questions about the application and/or utilization of PPP Loans, please contact us and we will help guide you through the process. For general information on PPP Loans, check out SBA’s FAQ here.
