Tag: coronavirus

Nonprofit Entities May Be Eligible to Apply for Financial Assistance

Nonprofit entities, including religious organizations and veteran organizations, suffering from the impact of the COVID-19 crisis, are eligible to apply for financial assistance in the form of Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Paycheck Protection Program loans and SBA Economic Injury Disaster loans. In addition to these loan programs, CARES has deemed nonprofit entities eligible to defer payment of its share of social security taxes and possibly receive an employee-retention tax credit. Moreover, CARES expanded unemployment benefits to employees of nonprofit and religious organizations that were laid off as a result of the COVID-19 crisis.

If your nonprofit or religious organization has questions about CARES or needs assistance in considering and/or applying for these loan programs and/or other relief efforts, Rosenn Jenkins & Greenwald LLP is available to promptly assist you. Please contact Paul T. Rushton (prushton@rjglaw.com), Lee S. Piatt (lpiatt@rjglaw.com) or Christyan Telech (ctelech@rjglaw.com) of our Business & Finance Department to discuss the available options.

BUSINESSES AFFECTED BY COVID-19 SHOULD GIVE IMMEDIATE CONSIDERATION TO PAYCHECK PROTECTION PROGRAM LOAN

As the COVID-19 virus continues to affect the health of our communities and the operation of the economy, Federal, state and local governmental authorities, as well as certain for-profit and non-profit organizations, have established loan programs and/or other relief efforts to assist eligible businesses that have been adversely affected by the Coronavirus crisis.
 
For example, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES”), the Federal government has created the Paycheck Protection Program (“PPP”) that is designed to make loans available to small businesses to encourage employee retention and assist employers in meeting ongoing payroll and debt obligations. PPP loans are guaranteed by the Small Business Administration (“SBA”) and made through existing SBA-approved lenders.
 
There are minimal requirements for eligibility for a PPP loan. In general, the borrower must have less than 500 employees and make a good-faith certification that the COVID-19 crisis necessitated the PPP borrowing and that the PPP loan will be used only for specified purposes, including certain interest payments, payroll costs, employee group health care benefits, rent, and utility payments. PPP loans do not require the posting of collateral security and have a maximum rate of interest of 4%. PPP loans are also eligible for full or partial forgiveness.
 
Starting on April 3, 2020, small businesses and sole proprietorships can apply for PPP loans through lenders that have previously offered SBA loans. Beginning on April 10, 2020, independent contractors and self-employed individuals can apply for PPP loans to cover their payroll and other certain expenses through existing SBA lenders. The current end date for PPL loan applications is June 30, 2020.
 
Because it is anticipated that the demand for PPP loans will be high and that the existing funding for the PPP will be insufficient to meet the anticipated PPL loan applications, it is strongly recommended that eligible borrowers submit an application for a PPP loan through a SBA-approved lender promptly following the opening of the window for PPP applications (i.e. on April 3, 2020 for eligible small businesses and sole proprietors and on April 10, 2020 for eligible independent contractors and self-employed individuals).
 
If you are interested in confirming your eligibility for a PPP loan, obtaining assistance with your PPP loan application, identifying a SBA-approved lender and/or learning more about other loan programs and relief assistance, Rosenn, Jenkins & Greenwald, LLP and its Business & Finance Department are available to assist you. Please feel free to contact any of the partners in our Business & Finance Department, including Paul T. Rushton at prushton@rjglaw.com, Steven P. Roth at sroth@rjglaw.com, or Lee S. Piatt at lpiatt@rjglaw.com. We are available to promptly assist you with these very important issues. Stay safe and healthy.

RJG Coronavirus - We Can Help You

Is your Business Complying with Recent Governmental Orders Aimed at Combating COVID-19?

As businesses struggle to understand and comply with the various governmental orders intended to combat, and new laws intended to address the economic impact of, COVID-19 (the Coronavirus), they should seek legal counsel to assist them in properly complying with those orders and understanding the requirements and implications of those new laws. In a rapidly changing climate, Rosenn, Jenkins & Greenwald’s Labor & Employment Department is available to assist business owners in fulfilling their obligations under these new requirements and in making any necessary business decisions as a result of these new requirements. If you require assistance with these matters, please contact Jim Valentine or Kieran Casey of our Labor & Employment Department at jvalentine@rjglaw.com or kcasey@rjglaw.com.