On May 15, 2020, the United States Treasury Department issued its long awaited Paycheck Protection Program (“PPP”) Loan Forgiveness Application Instructions (“Forgiveness Application”), including a PPP Loan Forgiveness Calculation Form (with instructions) and a list of expected supporting documents to accompany the Forgiveness Application (3245-0407 SBA Form 3508 PPP Forgiveness Application.pdf). The following is a summary of the material points from this guidance.[1] Eight-Week Period for Measuring Forgiveness – a Helpful Option Added The Borrower’s loan forgiveness is measured during the eight-week/56-day period following receipt of the PPP loan, with the first day being the date of receipt of the …
PPP Loans — Building the Case to Support Your Certification of Economic Need
UPDATE AS OF MAY 5, 2020 – SBA EXTENDS SAFE HARBOR TO MAY 14, 2020 AND PROMISES FURTHER GUIDANCE PRIOR TO THEN In creating the Paycheck Protection Program (“PPP”), the CARES Act required that “an eligible recipient applying for a covered [i.e., PPP] loan shall make a good faith certification that . . . the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.” To that end, the application for a PPP loan includes the following certification by the applicant: “[c]urrent economic uncertainty makes this loan request necessary to support …
Toolkit: A 4-Step Toolkit to Address Uncertainties
COVID-19 and the ripple effects are wreaking havoc on the American economy and especially small and medium-sized businesses. Many clients have asked us about “best practices” and “what other people are doing.” The objective of this Toolkit is to assemble that information for you in one place. That includes a recurring 4-step process utilizing best practices to manage in a crisis. We will maintain and update this Toolkit throughout the crisis. We will post updates to our COVID-19 Resource Center where you will also find a broad range of information, links, examples and tools. (Toolkit) Disclaimer: The information you obtain …
Changes in PPP Loan Program in the SBA’s Interim Final Rule
On April 2, 2020, the SBA issued an “Interim Final Rule” providing interpretations and guidance for loans under the Payroll Protection Program (“PPP”). The interim rule is effective immediately despite the fact that the SBA will continue to take comments for 30 days. This is a first come, first served program that will continue until the earlier of June 30, 2020, or until the funds are exhausted. Secretary Mnuchin has indicated the President will request additional funds if the initial $350 billion is over-subscribed. Disclaimer: The information you obtain at this site is not, nor is it intended to be, …
Essential Resources for Managing Your Business in Uncertain Times
Your business is or will be under unprecedented pressure. We have created the Resource Center to provide you with critical tools to manage through this uncertainty, including a Toolkit, Cash Flow Projection template, and essential information for accessing government programs such as the Economic Injury Disaster Loans and the new Paycheck Protection Program included in the CARES Act. TOOLKIT – A 4-Step Process to Address COVID-19 Uncertainties.pdf Changes to PPP in SBA’s Interim Final Rule.docx SBA Issues Last Minute Interim Rule on PPP Critical Leadership Traits during Crisis SBA Affiliation Rules as They Pertain to The CARES Act Key Features …
13-Week Cash Flow Projection Template for Your Business
UPDATED: This template has been updated to include a tool for projecting and tracking use of PPP loan proceeds and optimizing the amount of loan forgiveness here. A rolling 13-week Cash Flow Projection is an essential weapon in your battle against uncertainty. This template may be used to create that tool for your business. Instructions for creating and using the template are included. If you need additional information, assistance, or a review of your projection, contact Herman Chandiramani. (Please note this tool will automatically download onto your computer into your Download files.) You may also find the below articles helpful …
Corporate Development Executive, Business Lawyer Joins Coolidge To Lead Strategic And Advisory Services Business
Coolidge Wall Co., L.P.A. is pleased to announce that Douglas M. Ventura has joined the firm as President of Coolidge Strategic|Advisory Services (CSAS). Ventura will also be a member of Coolidge’s Corporate and Business Practice. As president of CSAS, Ventura will oversee this new ancillary services business, which offers business owners, investors and boards of directors a portfolio of services to develop, refine and execute long-term growth strategies. “Over the years, many of our clients have sought help developing and executing growth strategies,” said Sam Warwar, Shareholder and attorney in the firm’s Corporate and Business Department. “CSAS meets both of …