A hallmark of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was the creation of the Paycheck Protection Program (PPP) which, in general terms, allowed an employer with fewer than 500 employees to obtain forgivable loans equal to 2.5 times its average monthly payroll costs (capped at $10M) provided the funds were used for permitted purposes. Those purposes included the payment of payroll costs, continuation of health care benefits, employee salaries, interest payments on any mortgage, rents and utilities and interest payments on other debt obligations incurred before February 15, 2020. Under the CARES Act, applications for a PPP loan had to be submitted by June 30.
On July 4, 2020, President Trump signed into law a bill that extends the PPP loan application deadline until August 8.
The CARES Act and PPP have been the subject of a flurry of regulations, FAQs issued by government agencies and the PPP Loan Flexibility Act; each outlined and expanded the parameters of the law. For those still interested in pursuing a PPP loan, understanding the rules related thereto is essential. I encourage you to visit the links below from the von Briesen & Roper, s.c. COVID-19 Task Force information page and to read the articles that were published as the laws developed. The Task Force page includes a substantial collection of information related to the COVID-19 legislation coming out of Washington D.C. Here, I provide links to the articles concerning the PPP loan legislation and guidance. (As the government continues to provide additional guidance interpreting the laws, pay attention to the date of each article to ensure that you are considering the most recent guidance when applying for a PPP loan.)
- Initial Outline of Key Provisions in the CARES Act(3/26)
- CARES Act Paycheck Protection Program(3/28)
- PPP Loan Approved – Now What?(4/13)
- Sole Proprietors, Independent Contractors and Self-Employed Addressed in Latest PPP Guidance(4/20)
- Paycheck Protection Program Curve Ball for Some Loan Recipients(4/24)
- IRS Disallows Deductions for Forgiven PPP Expenses(5/5)
- Further Updates on CARES Act Financial Assistance for Business Too Large for PPP(5/5)
- Further SBA Guidance on the Necessity Certification(5/13)
- PPP Compliance Considerations for Federal Funding Novices(5/26)
- Key Takeaways from PPP Flexibility Act(6/4)