Lenders to start accepting PPP applications
The attorneys at Bernkopf Goodman are committed to guiding our clients through this uncertain time. We have spent the time to read the 880-page stimulus act in order to best advise our clients.
The Paycheck Protection Program (“PPP”), a key component to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), was designed to provide relief and resources to small businesses in response to the economic effects of the coronavirus pandemic (the “COVID-19 Pandemic”).
Small businesses (in operation on February 15, 2020) with 500 or fewer employees are eligible to apply for the PPP to provide cash flow assistance to employers who maintain their payroll during this pandemic. Companies with more than 500 employees with multiple small locations may also be eligible if they meet the size standards for the SBA. See the SBA Size Standard Tool for more eligibility information.
A loan, with a maximum loan size of $10,000,000, is available to qualified companies to keep employees employed during the COVID-19 Pandemic. One of the notable features of the CARES Act is the potential forgiveness of the loan (or a portion of the loan) depending on how the business uses the funding.
Lenders will begin accepting applications tomorrow, Friday, April 3, 2020.
If you have any questions or require assistance navigating the application process with your lender, please contact your Bernkopf Goodman team member or Lydia Chesnick at firstname.lastname@example.org, 617.790.3325, or Rachel Baime at email@example.com, 617.790.3352.
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The spread of the novel coronavirus (COVID-19) continues to produce global uncertainty, interrupt supply chains, restrict travel and raise employee safety concerns, among other challenges.
Bernkopf Goodman LLP is closely monitoring cases here and abroad and combining our capabilities to provide critical guidance to clients in an urgent and quickly evolving situation. If you have questions about how COVID-19 could impact you or your business, please contact us.