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UPDATE | PPP LOAN FORGIVENESS GUIDELINES COMPLETE

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Summary of Paycheck Protection Program Loan Forgiveness Guidance
Prepared by The Groom Law Group

On the evening of May 22, the Small Business Administration (“SBA”) and Department of Treasury released two interim final rules (“IFRs”) – one IFR relating to the rules that will apply in determining the amounts eligible for loan forgiveness under the Paycheck Protection Program (“PPP”) (“Forgiveness Rules IFR”), and a second IFR relating to the process under which requests for loan forgiveness will be reviewed by lenders and the SBA (“Forgiveness Process IFR”).
Forgiveness Rules IFR
Much of the content of the Forgiveness Rules IFR affirms concepts that were already reflected in the Loan Forgiveness Application (“LFA”) that SBA released last Friday, May 15. However, some of the highlights are as follows:

Eligible Payroll Costs
• Affirms that borrowers can measure payroll costs based on either the 8-week default covered period (beginning on the loan disbursement date) or an “alternative payroll c…

CS CLIENT NEWSLETTER 5.25.20

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UPDATE | PPP LOAN - A LIFE LINE OR JUST A STRING ATTACHED ?

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PPP LOAN  - A LIFELINE OR JUST A STRING ATTACHED?
The PPP Loan program has been a lifeline for many of our clients over the last several months. However, shortly after the program kicked off, it became mired in controversy and bad press from all the stories of large corporations receiving funding.  The immediate reaction was to add regulations that became a point of uncertainty and anxiety for many of our clients.

On May 13, the SBA and the Department of the Treasury provided additional guidance in the form of a Frequently Asked Questions release (find full release here). In short, the SBA has created a "Certification Safe Harbor" for a business that borrowed less than $2 million. The business that borrowed less than $2 million are automatically deemed to have made the financial-necessity certification on the loan application in good faith. While this does not guarantee forgiveness of the loan, it does shelter those businesses from facing the potential penalties from failing t…

UPDATE | PPP LOAN FORGIVENESS APPLICATION

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The Small Business Administration has issued an application and instructions for requesting loan forgiveness under the PPP Loan program. 
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cyclesFlexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loanStep-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgivenessBorrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declinedFind the form here.

THE SCIENCE BEHIND "THE SCIENCE" OF POLITICAL CORRECTNESS

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A Note From Steve

COVID 19 is real, highly commutable, and very dangerous to certain members of our society. It needs to be taken seriously. We need to follow the guidelines of the real scientist who work hard to protect families, employees, and customers. My heart and prayers go out to tens of thousands of families who have lost loved ones. These prayers are personal, and God does hear and respond to them. If we are wise trying times help us grow in faith otherwise, we fall victim to “the science” of political correctness.

The term “the science” is not new, but the meaning is. From the beginning of time, man has searched what is true. Within nature, we have learned processes and procedures for separating theories from the facts. Which led to enlightenment that enriched our lives. We came to view the study of science for what it was, valuable and at times, necessary for good decision making.

Naturally, we sent our hopes of the future, our treasured children, off to the billion-dollar…

UPDATE FROM SBA: PPP LOAN FORGIVENESS

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OPENING BACK UP: PROCEDURES, RECOMMENDATIONS & IDEAS

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Check Out this useful information on Opening Back Up: Procedures, Recommendations, and Ideas! 



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