Tag: PPP

Application and Instructions for PPP Loan Forgiveness Published by SBA

The Small Business Administration (the “SBA”) recently published the “Paycheck Protection Program Loan Forgiveness Application” (the “Application”), as well as instructions associated with the Application (the “Instructions”). Taken together, the Application and the Instructions provide important guidance which borrowers who have received a PPP Loan should be aware of in order to obtain the loan forgiveness provided by the Paycheck Protection Program.

The attorneys at Rosenn Jenkins & Greenwald are regularly monitoring the PPP Loan guidance and regulations issued by the SBA and the U.S. Department of Treasury in order to assist clients in administering their PPP Loans and obtaining available loan forgiveness. Please contact Jim Valentine (jvalentine@rjglaw.com) or Kieran Casey (kcasey@rjglaw.com) if you have questions or require any assistance related to a PPP Loan.

New Guidance Issued about “Good Faith” Certification Requirement for PPP Loans

In submitting an application for a Paycheck Protection Program (a “PPP Loan”), applicants were required to certify in good-faith that receipt of the PPP Loan was “necessary to support” their “ongoing operations.” The manner in which the Small Business Administration (the “SBA”) will review whether or not such certifications were made in good faith is a topic of ongoing concern among PPP Loan recipients. Yesterday, May 13th, the SBA, in consultation with the U.S. Department of Treasury (“DOT”), indicated that “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification” … “in good faith.” The SBA also indicated that, in the event it determines a borrower which received PPP Loans in an amount greater than $2 million did not make the required certification in good faith, it will provide such borrower the opportunity to repay the PPP loan and “will not pursue administrative enforcement or referrals to other agencies based on” such determination if the borrower does repay the PPP Loan.

The attorneys at RJG are regularly monitoring the PPP Loan guidance issued by the SBA and the DOT in order to assist clients in administering their PPP Loans and obtaining available loan forgiveness. Please contact Jim Valentine (jvalentine@rjglaw.com) or Kieran Casey (kcasey@rjglaw.com) if you have questions or require any assistance related to PPP Loan related issues.

If you Received a PPP Loan, Ensure you are Complying with the Applicable Guidance and Regulations

Businesses and non-profit organizations which have received a loan under the Paycheck Protection Program (a “PPP Loan”) must comply with a series of guidance and regulations, including employee retention and compensation maintenance requirements, in order to obtain the loan forgiveness provided by the Program. The attorneys at Rosenn Jenkins & Greenwald are regularly monitoring the PPP Loan guidance and regulations issued by the Small Business Administration and the United States Treasury Department in order to assist clients in administering their PPP Loans and obtaining available loan forgiveness. Please contact Jim Valentine (jvalentine@rjglaw.com) or Kieran Casey (kcasey@rjglaw.com) if you have questions or require any assistance related to PPP Loan forgiveness, or any other issues related to the administration of PPP Loans.

Paycheck Protection Program May be Receiving Additional Funding This Week

Based on the latest news reports, it appears that the popular Paycheck Protection Program (“PPP”) will be replenished with limited additional funding this week. There is already speculation that the new funds, once available, will be depleted in a matter of days. PPP loans are expected to be in even higher demand during this application window as the Small Business Administration (“SBA”) is no longer currently accepting applications for its highly sought-after Economic Injury Disaster Loans. Accordingly, interested business owners should immediately contact their SBA-approved lenders to confirm their eligibility for a PPP Loan and to submit the necessary application and back-up documentation required to obtain such funds.

Addressing the requirements of PPP loans in such a limited timeframe can be overwhelming, but the Business and Finance Department at Rosenn Jenkins & Greenwald LLP is ready to assist business owners through this process. Please contact Paul T. Rushton (prushton@rjglaw.com), Lee S. Piatt (lpiatt@rjglaw.com) or Christyan A. Telech (ctelech@rjglaw.com) to discuss how our team can assist you in these difficult times.