PPP Loan Forgiveness Assistance
We developed a new service to help you as you navigate PPP loan forgiveness and alleviate your concerns about the potential consequences of noncompliance.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act established the Paycheck Protection Program (PPP), authorizing loans of up to $10 million for business and nonprofits with fewer than 500 employees. To cover losses caused by the COVID-19 pandemic, these loans were intended to be forgivable if a borrower retained workforce levels.
In implementing the program, the Small Business Administration (SBA) has issued a confusing and evolving set of rules that restrict the loan amounts eligible for forgiveness. For example, SBA guidance limits the extent to which payroll and nonpayroll costs are eligible for loan forgiveness. At the same time, the rules establish exceptions and safe harbors for reductions to amounts eligible for forgiveness due to layoffs and salary cuts.
Federal grantees that have received PPP loans face additional legal complications. To avoid charging the same costs to both the PPP loan and other federal grant programs (i.e., so-called “double dipping”), federal grantees will need to carefully consider which costs are charged to the PPP program and which are charged to other federal programs.
Borrowers that fail to comply with SBA guidance could find themselves ineligible to receive loan forgiveness for the full loan amount, be required to repay the loan in full, and subject to scrutiny by the Department of Justice, federal watchdog agencies, and whistleblowers. Federal grantees that lack proper documentation of costs charged to the PPP loan and other federal programs could face cost disallowances from funding agencies.
Our attorneys can help you better understand how to comply with SBA guidance, answer questions on meeting requirements for loan forgiveness, and maintain adequate documentation in support of costs charged to federal grant programs.
Included in the flat fee are the following benefits:
- Guidance to assist borrowers completing the SBA loan forgiveness application
- Checklists to assist borrowers calculate the amount of loans eligible for forgiveness
- Additional resources to assist borrowers and federal grantees