Additional Funds Allocated to the PPP
Since being signed into law, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) created, among other things, the Paycheck Protection Program (PPP) which provides for low interest loans for small businesses to cover certain payroll and operating costs. PPP loans may be forgiven, in whole or in part, if the funds are used for eligible costs during the covered period and jobs are retained and salaries are restored by June 30, 2020.
The initial round of funding in the amount of $349 billion was available under the PPP and those funds were exhausted in less than two weeks. Many small businesses, self-employed individuals, sole proprietors and independent contractors thought they had lost their chance to participate in the PPP. We are happy to report that today, an additional $310 billion was allocated to the PPP and will be available for eligible borrowers. More details will follow, but it’s not too late to apply!
We have assisted many of our clients by reviewing loan documents and providing guidance on strategies to maximize loan forgiveness. While you may be tempted to sign the documents to get the funds as quickly as possible, we encourage you to talk to us first. Our attorneys are familiar with the loan documentation being provided by national and local lenders.
We have already identified issues in drafts of loan documents received from various lenders, and have assisted clients by correcting mistakes, clarifying obligations and maximizing forgiveness strategies. If you have already signed your documents, it’s not too late. We encourage you to provide the documents to us so we can help you avoid a costly default and advise you on strategies to maximize your forgiveness of the loan.
Construction Resumes May 8, 2020 in Pennsylvania
Governor Wolf has announced that Pennsylvania’s statewide stay-at-home Order would be extended through at least May 8th – but also that ALL public and private residential and non-residential construction activities would be allowed to resume in the Commonwealth as of that date.
Construction will be permitted as authorized by the Governor’s and Secretary of Health’s April 20, 2020 amendments to their business closure orders. Additional compliance orders with additional guidance may be released shortly by the Governor’s office.
If you have any questions related to PPP loans, the CARES Act, or the Families First Coronavirus Response Act (FFCRA), feel free to contact us at 215-887-0200 or access the firm’s COVID-19 Resource Center for more information.