Washington D.C.- On April 24, 2020 the President signed into law the Paycheck Protection Program (“PPP”) and Health Care Enhancement Act (the “Act”). The Act expands on the Cares Act PPP loan initiative by increasing funds available to the Small Business Administration (“SBA”) by $310 billion totaling $659 billion available for small business economic relief.
Importantly, the Act provides for an additional $250 billion in unrestricted funds for the PPP loans and an additional $60 billion allocated for smaller lending institutions. All in the hope that PPP funds reach the small businesses desperate for relief.
Accordingly, the SBA and the Department of the Treasury jointly released a statement on Friday that the SBA will resume accepting PPP loan applications on Monday April 27, 2020 at 10:30 AM EDT. Lenders are directed to continue processing loan applications previously submitted as well as any new applications. Given the short time it took to exhaust the initial round of PPP funding, applicants should submit its PPP loan application as soon as possible to an approved lender. Again, applications are funded on a first come first served basis. Potential borrowers should monitor its application and confirm all information submitted to lenders. For more information on the PPP, look for earlier posts in our resource center.
Of note, it is the borrower’s responsibility to attest to the accuracy of the payroll calculation. The lender will rely on the borrower’s representations with respect to amounts excluded from payroll costs. If the lender identifies an error, the lender will work with the borrower to remedy the issue. Additionally, it is the responsibility of the borrower to apply all SBA affiliation rules when applying for PPP loan relief.
If you need assistance with the application or have questions on the process and applicable SBA rules, Quinlivan & Hughes is here to help, contact us today by calling us at 320-200-4928. You can also contact us online.
Established more than 100 years ago, Quinlivan & Hughes ranks among the oldest and largest law practices in Central Minnesota. The full-service law firm has growing legal teams in the areas of employment law, business law, government law, insurance defense, trust and estate planning, and general litigation. Learn more at Quinlivan.com.