Advice for Contractors About the Paycheck Protection Program
If you were fortunate enough to receive relief funds through the Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act., you need to have a firm understanding of how you can spend that money. Remember, this isn’t a handout; it’s a highly regulated federal process and there are strings attached.
If you didn’t receive funding through the PPP’s first round of disbursements, don’t give up hope yet. You still need to do everything in your power to improve your chances of success in the future. In this brief article, a COVID-19 lawyer will offer one piece of advice for businesses that received their PPP loan and ones that didn’t. For all your construction legal needs, consult a Florida construction attorney.
For Contractors That Received Funding
If you received funding, the main goal is to properly allocate that funding to the areas of your business where it’s permitted to be spent. In our article, 5 Tips for Navigating Your Way Through the Paycheck Protection Program (PPP), we explained several of the main items for contractors to consider with their relief loans. The main emphasis should be on trying to deposit all your PPP funds in a separate account if possible. Although it’s not a requirement, this can make your payment process as straightforward and transparent as possible. Failure to do this can result in losing track of your expenses or inadvertently spending that money elsewhere.
For Contractors That Didn’t Receive Funding
If you missed out on the first disbursement of PPP funds, there’s still hope you’ll have another chance to receive funding; however, contractors need to learn from their mistakes the first time around (if they made any). The most common mistake contractors made that resulted in a lack of relief funds is that they failed to fill out the application perfectly. Perhaps payroll was not accurate or misstated or there were certain items included on the application that shouldn’t have been there. The point is that if you are currently redoing your application, our construction attorneys advise that you be as conservative as possible when filling out this application. In other words, it’s best to ensure you will receive any funds instead of achieving your maximum amount of funds.
After the spread of COVID-19 is controlled, construction businesses need to be prepared for the next step. Realistically, it seems like we’re heading towards an economic downturn that will impact the entire industry, so it’s important to do everything you can today to obtain funding. If you need assistance navigating your way through the Small Business Administration’s loan programs, consult a COVID-19 attorney today at Cotney Attorneys & Consultants.
If you would like to speak with one of our Florida construction attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.