My webinar on the Paycheck Protection Program (PPP) explores loans provided for small businesses under the CARES Act. As you may have heard, the over $360 billion in funds originally approved in March were completely depleted within a week. On April 24, 2020, additional funding was signed into law after significant outcry from the many businesses left out by the original approval.
The additional funding includes an approximately $250 billion expansion to the PPP. The following are key takeaways to consider:
- Businesses must certify that they are not receiving additional capital. Many small businesses could not touch the original round of funding because large corporations (such as Shake Shack) were given priority by lenders. Obviously, large entities have available additional capital – however, were not asked to make a certification as part of the first round of the PPP.
- Those that have already borrowed but have discovered they cannot meet the loans’ terms can give back funding by May 7, 2020. This “grace period” allows businesses to change their mind without penalty.
- The terms of the original PPP approval still largely apply. The payback period (i.e. 2 years), calculation of approved funding, and eligibility requirements still largely stand. I recommend checking the SBA and Treasury websites for additional regulations and guidance in the coming weeks for additional clarification.
Please tune into my webinar for additional information on the PPP and its update. Wishing you and your family health and safety during this time.
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Theodora Stringham assists individuals, businesses, and organizations with growing successfully while minimizing liability. Focusing on real estate and personnel needs, Ms. Stringham executes sustainable plans for real estate development and employee matters. She provides comprehensive representation for everyday growth issues, including, but not limited to, re-zonings, site plan approvals, eminent domain/valuation concerns, employment discrimination, and disciplinary issues. Ms. Stringham’s scope of representation ranges from identifying potential liability and providing counseling/trainings, all the way through representation at trial.
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