Paycheck Protection Program Rules Released
Laws and regulations are changing rapidly. After the publication of this article they are subject to change. Check back regularly for updates.
Last evening (4/2/20), the U.S. Treasury Department and SBA issued interim rules regarding implementation of the Paycheck Protection Program (PPP) under the recently-enacted CARES Act (i.e., Phase III Stimulus). The rules are effective immediately, which should allow SBA financial institutions to begin accepting PPP loan applications on Friday, April 3, 2020.
We have been closely tracking the CARES Act, particularly the Paycheck Protection Program. Already, we have answered many questions from business owners and managers regarding the details of the PPP. We believe that filing your loan application promptly may be critical in order to ensure program funds are available.
If you need any assistance navigating the SBA emergency loan process, including help understanding the requirements and parameters of the PPP or other SBA emergency programs, completion of the application, compilation of supporting documents, or dealing with a lender, we can assist your business and, with respect to any PPP loan, we may be able to provide that assistance at no cost to you. The PPP provides that no attorney’s or other agent’s fee may be paid by the borrower or paid from PPP loan proceeds, but will be paid from the fee the SBA pays to participating lenders for making each PPP loan. We suggest that clients first work with their existing banking relationship, first to see if they are participating in the PPP loan program and second, whether they will pay the agent fees you incur in representing you, as provided by the PPP rules,. If they do, we can work with you and your lender to expedite the loan process and make sure you are maximizing the benefits offered by this complicated and evolving loan program.
Let us know if you want to discuss and we can set up a call.