COVID-19 CARES PPP Loan Assistance
COVID-19 CARES 7(a) / PPP Loan Assistance
The CARES Act expands the ways the Small Business Administration (SBA) can help small businesses remain open and meet payroll. The law expands the allowable use of the so-called “Section 7(a)” or “PPP loans” funds to include payroll support, including paid leave, mortgage payments, insurance premiums and debt obligations and waives many of the usual requirements, such as collateral and personal guarantees. Moreover, if employers maintain their payrolls for eight weeks after the loan origination, the portion of the loan applied to payroll, mortgage interest, rent and utilities will be forgiven.
Additionally, one of the more debated topics in the newly established Paycheck Protection Program (PPP) is the treatment of partner compensation, whether in the form of guaranteed payments or distributions. Specifically, the question is whether guaranteed payments or distributions are treated as “payroll costs” as defined by the CARES Act.
Our team is here to answer questions and make the process easier for you and your business during this difficult time.
We can help you:
- Calculate the PPP loan amount
- Apply for the PPP loan
- Calculate the PPP forgiveness amount
- Complete and file the PPP loan forgiveness application
- Determine how partner compensation should be treated for PPP loans
- Assist with PPP loans and loan forgiveness applications for partnerships