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COVID-19 CARES 7(a) / PPP Loan Assistance

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Andy Starnes
Partner
Andy StarnesPartner
Steven Murphy
Partner
Steven MurphyPartner
Mike Pompilio
Partner
Mike PompilioPartner

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 7(a) loan amount
  • Apply for the 7(a) loan
  • Calculate the forgiveness amount
  • Complete and file the 7(a) loan forgiveness application
  • Determine how partner compensation should be treated for 7(a) loans
  • Assist with 7(a) loans and loan forgiveness applications for partnerships

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