Small Business Assistance During the COVID-19 Crisis

What is every small business’s goal during this unprecedented economic crisis? Most small business owners would likely tell you that it would be to keep the doors open and keep the staff employed. What if I told you that you could do both through a small business loan? And that an attorney could help you work through the process without you having to pay a fee?

Well we have good news (it’s been a while since we’ve been able to say that!).The $2.2 trillion coronavirus stimulus bill signed into law by President Trump last week set aside $249 billion for a new small-business loan program known as the Payroll Protection Program.

Under the Payroll Protection Program, small businesses are eligible for loans to maintain payroll and other expenses with a portion of the loan ultimately being forgiven. The goal is to help businesses survive while simultaneously keeping their people employed. A win-win for everyone.

So who’s eligible?

Small businesses with fewer than 500 employees are eligible to apply to the Payroll Protection Program. These include businesses that are nonprofits, sole proprietorships, self-employed individuals, independent contractors, and veteran organizations.

When do we apply?

Applicants can submit applications beginning on Friday April 3rd according to Secretary of the Treasury, Steve Mnuchin. Business owners must show that they have been in operation since February 15th and their credit score will be evaluated, however no collateral is required. Eligible businesses can receive same-day approval through a participating SBA7(a) lender, bank, or credit union.

To review the application form, follow this link: https://www.sba.gov/document/sba-form--paycheck-protection-program-ppp-sample-application-form

The best part?

During the first eight weeks following the origination of the loan, money that is used for payroll, rent, and utilities can be forgiven. That’s right, forgiven. According to Mnuchin, “the loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

Still on the fence?

If you’re unsure about the process, the best thing you can do is work with a lawyer. As another benefit of this program, law firms can provide guidance at no cost to the borrower. Because law firms are eligible to be paid directly through lender fees, we are able to assist you in making decisions for your business without charging you a fee.

For a general overview of the Paycheck Protection Program, check out the U.S. Department of Treasury publication here.

We may not physically be in the office at this time, but we remain dedicated to supporting you, your family, and your small business. Our office can be contacted via telephone and each of our employees can be contacted via e-mail. We know that things are constantly changing and can be difficult to follow so give us a call today and we’ll help you get on the right track.