By Julie Pace, Chris Raddatz, and Tim Forsman
The Small Business Administration (“SBA”) has issued new guidance regarding the Paycheck Protection Program (“PPP”), which offers unprecedented financial relief to many businesses affected by the COVID-19 crisis. These new rules include changes and clarifications for borrower eligibility requirements, loan forgiveness, program penalties for non-compliant borrowers, as well as updated guidance on how SBA affiliation rules will apply to PPP loan borrowers. The Special Inspector General for Pandemic Recovery (the “SIGPR”) will be responsible for auditing and investigating fraud and abuse relating to CARES Act funds, including PPP loans. It is critical that PPP applicants are truthful in applying for PPP funding, as the SIGPR will have broad authority to pursue civil and criminal remedies against noncompliant borrowers. PPP borrowers should be aware that the SIGPR may eventually audit their PPP loan. Some lenders have outright declined to offer PPP loans, while many others are bringing their application processes for PPP loans online. Our dedicated COVID legal team at Gammage & Burnham is committed to bringing our clients the most current guidance possible regarding the rapidly changing PPP loan program, along with the numerous other employment, tax, and SBA changes which have been passed by Congress to help address the economic impact of COVID-19.
Julie Pace, Chris Raddatz and Tim Forsman of Gammage & Burnham, P.L.C., will participate in a discussion of COVID-19 employment law considerations, as well as federal stimulus programs available to businesses to help meet the challenge of the pandemic via a free webinar tomorrow, April 9th, at 2 p.m. Phoenix time. William McManus of CSB Strategic Business Solutions will moderate the panel. Attendees will learn about their obligations to employees under the new COVID-19 legislation, as well as the various stimulus programs that are now available under federal law. This is a must-attend event for any business owner. Visit https://summit.aidantaylor.com/talks/making-sense-of-the-stimulus-package-for-small-businesses/ to register now.
Please contact Julie Pace, Chris Raddatz, or Tim Forsman if you have any questions regarding how these issues may impact your business.