Need Help Applying for a Loan Through the Paycheck Protection Program?
Among its numerous relief efforts, the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act is designed to provide relief to small businesses that are struggling during this difficult time. There has been a lot of questions and confusion surrounding the CARES Act, specifically its Paycheck Protection Program (PPP). In this article, our Tallahassee construction lawyers would like to offer some sound advice to contractors who are considering applying for a PPP loan.
Editor's note: On the morning of April 16, the U.S. Small Business Administration announced that the PPP would no longer be taking applications. The White House and Congress are currently negotiating additional funding for the PPP as well as the Economic Injury Disaster Loan. Stay informed and be ready to apply for your PPP loan when funding is approved.
First Come First Serve
Of the $2 trillion accounted for in the Cares Act, only $349 billion is being offered to small businesses in the form of forgivable loans. These loans are on a first-come, first-serve basis, so once all that money is gone, it’s gone. Bank of America is already reporting that it received 178,000 applications totaling $33 billion.
There are many questions surrounding the PPP. But one thing is clear: these loans are going to go fast. If you are the owner of a struggling business in the construction industry, you need to quickly decide whether or not you will be pursuing a loan. Of note, you can apply for both a disaster relief loan AND a PPP loan. This situation is unprecedented and a bit of a moving target, so we recommend applying for anything and everything and seeing what you qualify for. We also recommend consulting with an accountant or contacting a Tallahassee construction lawyer from Cotney Attorneys & Consultants.
What You’ll Need
In order to submit an application for a PPP loan, you’ll need to have evidence of your payroll, including your 2019 tax return as well as Forms W-3, 940, 941. As specified on the application, “The Applicant will provide to the Lender documentation verifying the number of full-time equivalent employees on the Applicant’s payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight-week period following this loan.” We encourage you to get with your accountant if these documents are not already at your fingertips.
For Any Assistance
Although future laws may allocate money to the PPP, it would appear that the $349 billion funding is all there is for the time being. It is critical that you apply for these loans correctly the first time so that you won’t have to reapply and risk not getting a piece of that $349 billion. For a fixed price, a COVID-19 construction attorney from our law firm will prepare your loan application for you to ensure that it is complete and contains all the required information for the loan to be processed. We can provide sound advice on credits, deferrals, and programs available under these new laws and help you find the program that’s right for you.
Alternatively, you can request a consultation. Our team would be happy to assist you in any way we can. If you need legal assistance at any time, remember that the attorneys at Cotney Construction Law are always here to help.
If you would like to speak with a COVID-19 construction lawyer, 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.