STAY INFORMED!: Important COVID-19 Loan Options
Now is the time to prepare for the road to recovery. With changes constant and released guidance on-going, lean on Sax to stay in the know with the most recent updates made to the relief programs, forgiveness clarifications, best practices for securing aid, and more.
Guidance & FAQs
In this week’s update, Sax’s Recovery Task Force discussed the recent updates to the loan programs and forgiveness strategies made available to us for COVID-19 relief.
On July 4, 2020, a five-week extension of the Paycheck Protection Program (PPP) was officially passed, extending the application deadline to August 8 (previously set to close on June 30). The extension allows companies more time to apply for federal assistance for COVID-19 relief.
On June 22, 2020, the Small Business Administration (SBA) issued its latest Interim Final Rule, providing borrowers and lenders with additional guidance surrounding the Paycheck Protection Program (PPP) loan forgiveness process. While questions and open items remain, we have been provided with clarity on a number of items. Read More Now.
The non-profit New Jersey 30 Day Fund provides forgivable loans for NJ-based small businesses. The forgivable loan is intended to provide immediate financial assistance (within maximum three days) to meet payroll, preserve healthcare coverage for employees and save jobs while awaiting recently approved federal funding and reopening. Read More Here.
On June 16, 2020, the Small Business Administration (SBA) released the revised long form of the Loan Forgiveness Application and a streamlined version for borrowers meeting specific criteria. The SBA also released a new Interim Final Rule to provide further clarity surrounding some of the changes.
Effective June 15, 2020, the Small Business Administration (SBA) announced that it will begin accepting new Economic Injury Disaster Loan (EIDL) applications, as well as the EIDL Advance applications, for all eligible small businesses. Prior to this date, the SBA was only accepting applications from agricultural businesses.
After its initial launch on April 3, the program was oversubscribed within an hour. The Grant Program has since been expanded and applications are now being accepted (as of June 9, 2020) to be processed on a first-come, first-served basis.
The swift passage of the Paycheck Protection Program Flexibility Act (PPP Flexibility Act) of 2020 has brought welcome relief to borrowers who may be nearing the end of the 8-week Covered Period to expend the funds. While Congress has indicated that there is still work to be done on the Paycheck Protection Program (PPP), borrowers are now provided with additional options. Read on for the highlighted included in the PPP Flexibility Act.
The Small Business Administration (SBA) released an Interim Final Rule on May 22 that details the procedures the SBA will undertake to review selected loans, as well as how borrowers and lenders will be impacted.
The Small Business Administration (SBA) issued an Interim Final Rule on Friday, May 22 that provides interpretations and clarifications on the requirements governing Paycheck Protection Program (PPP) loan forgiveness and offers guidance to borrowers and lenders in a number of different areas.
On May 18, the SBA issued an additional Interim Final Rule surrounding certain circumstances in which aggregated affiliated borrower employee headcount exceeds 500. Provided the PPP funding was applied for prior to May 5, 2020, borrower eligibility will not be impacted if the headcount calculation only included U.S. based affiliated employees whose principal place of residence is the United States. Read more here.
On May 15, the Small Business Administration, in consultation with the Treasury Department, released the Paycheck Protection Program Loan Forgiveness Application which answers a number of questions impacting the PPP borrowing community. While the government has indicated that more guidance related to forgiveness is forthcoming, you can review the highlights of the current clarified items here.
On May 14, 2020, the SBA issued an additional Interim Final Rule which includes a provision that allows qualifying partnerships to increase the amount of their existing PPP loans for the self-employment income of partners that was excluded from the initial loan application.
The SBA released on May 13 FAQ #47 extending the deadline now to May 18, 2020 for borrowers who are still considering returning PPP funds. FAQ #47 further indicates that the deadline extension is automatic – there is no requirement for borrowers to separately apply.
On May 12, 2020, the House of Representatives released a $3 trillion, phase four economic relief package. Dubbed “The HEROES Act”, The Health and Economic Recovery Omnibus Emergency Solutions Act is aimed at protecting and preserving households, workers and state and local governments. Read on for the highlights of the package.
The Small Business Administration (SBA) just released updated guidance regarding the Paycheck Protection Program’s loan certification through a new FAQ #46. Read on for a summary of this important information.
The PPP certification requirements have been front and center in the minds of potential borrowers. On May 5, the SBA released an updated set of FAQs which added #43, indicating that the deadline to return PPP funds if it was determined a company could not meet the standard of the good faith certification has been extended from May 7, 2020 to May 14, 2020. Read More Here.
On April 30, 2020, the Federal Reserve released revised Main Street Lending Program terms and conditions, increasing borrower options while loosening certain borrower and lender restrictions and limitations. While the initial Main Street Lending Program contained the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF), last week’s Federal Reserve release added a third option for borrowers in the form of the Main Street Priority Loan Facility (MSPLF). Read More Here.
On April 30, 2020, the IRS provided clarity surrounding the federal tax implications of funds received under the Paycheck Protection Program (PPP). Specifically, the IRS has confirmed that federal tax deductions are disallowed in situations where the expenses are paid for with forgiven funds received under Section 1106 of the CARES Act. Read More Here.
Now is the time to prepare and plan for COVID-19 recovery through the vehicles of relief that have been made available to us. Specifically, the SBA’s Paycheck Protection Program (PPP) as loans have the potential for all, or a portion of the proceeds to be forgiven if certain criteria is met. With changes constant and released guidance on-going, Sax’s PPP Advisory Task Force has developed the following engagement to provide you and your team with the support necessary to navigate the intricacies of this program during the critical spend down period. View the Engagement Details.
On April 23, 2020 the SBA issued an updated set of FAQs which included an update to the certification a borrower must make when applying for a PPP Loan. In an April 28 interview, Treasury Secretary Steven Mnuchin said, “for all PPP loans over $2 million, the Small Business Administration will be doing a full review of that loan before there is loan forgiveness.”
In a continuing effort to clarify the questions and uncertainties surrounding the Payroll Protection Program (PPP), the SBA issued another set of FAQs on Thursday, April 23, 2020.
We specifically point your attention to FAQ #31, which augments the existing borrower good faith certification that is required as part of the application process. View the full update here.
On April 24, the “Paycheck Protection Program and Health Care Enhancement Act” was signed into law. Dubbed as “CARES 2”, the Act provides a second round of federal stimulus funding, including $310 billion to the Paycheck Protection Program (PPP).
As of April 27, the SBA has begun processing the second round of federal PPP applications. We recommend businesses who are eligible and who have not yet applied submit their applications ASAP. To help with the application process. View our PPP 10 Step Checklist.
Now is the time to prepare and plan for recovery through the vehicles of relief that have been made available to us including the Main Street New Loan Facility, the Main Street Expanded Loan Facility, PPP and EIDL. Read on for important information on the forgiveness piece of the applicable loans.
The Small Business Administration (SBA) released additional guidance on the SBA Loan Incentive Programs available to businesses for COVID-19 relief. Read on for the most recent updates made to the SBA loan programs; An overview and side-by-side comparison of the loan options; Loan forgiveness limits and details; Best practices for appropriately applying for these loans; Outstanding questions and where guidance is needed in the new law. Download PDF
Here are responses to the most frequently asked questions during our webinar presentations and client discussions with regards to the Small Business Administration (SBA) loan programs available for businesses for COVID-19 relief – the Paycheck Protection Program (PPP) and the Emergency Injury Disaster Loans (EIDL).
Recorded Webinars & Information Decks