Hiring an attorney to help applying for PPP/SBA loans
During time of quarantine and country-wide lockdowns, all non-essential businesses are required to shut down to maintain a safe and healthy environment for the community. With that happening, small businesses are being hit harshly with no income circulating, affecting not only the owners but the employees as well.
A new initiative being taken for small businesses to help them stay afloat is the Payment Protection Program otherwise known as “PPP”. The PPP is a convertible loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Small Businesses Administration (“SBA”) will forgive the loans if all employees are kept on the payroll for eight weeks and 75% of the loan is used for payroll. The rest can be spent on rent, mortgage interest, or utilities.
As of April 22, 2020, the SBA has run out of funding, however a new waive of funding is expected to come through any moment. The bill to replenish funds in the amount of $310 billion to assist small businesses has passed the Senate and is on the way to the House of Representatives and is expected to pass on Thursday, April 23, 2020.
We highly advise that you submit your application as soon as possible to place yourself in line to receive the funding as it is first come-first serve. At the Law Offices of Inna Vernikov, our lawyers are working together with accountants and are able assist you and your company through the process of applying for the loan.
SBA Loans FAQ (Frequently Asked Questions)
What is an SBA Loan?
– SBA loans are small-business loans guaranteed by the SBA (Small Business Administration) and issued by participating lenders, mostly banks. The SBA can guarantee up to 85% of the loans of $150,000 or less and 75% if more than $150,000.
What is PPP Stimulus?
-The PPP (Paycheck Protection Program) is intended to provide loans to businesses to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills.
Who is eligible for the loan?
– In addition to meeting the size requirement (500 or fewer employees for most companies), you must show that your business has been negatively impacted by the Coronavirus.
What can be done with the funds provided?
– With the funds provided 75% of it must go into payroll for employees and the remaining 25% can be used for non-payroll expenses such as rent and supplies.
Will the PPP opportunity expire?
– The deadline to apply for a Paycheck Protection Program loan is June 30,2020. Although the SBA is currently not accepting new applications because the funds have been exhausted, the funds are expected to be replenished any day now and it is still best to begin the process of putting together all materials needed to get approved for the loan and submit your application, so that when funds become available again you are more likely to get approved.
How does PPP loan forgiveness work?
– All or part of the loan you receive under PPP could be forgiven if you keep all employees on payroll-or rehire them by June30, 2020. Payroll costs must be 75% or more of your approved loan amount. Only 25% of the amount forgiven can be used for non-payroll expenses. The forgiveness won’t happen until the end of the eight-week period of employment following receipt of your loan.
Can I get help applying for the SBA loan?
– Yes! The Law Offices of Inna Vernikov based in New York are happy to assist those small businesses that are looking to apply for the SBA loan and need to get some help along the way. Just contact us on (212) 729-3497.
How will our office help with the process?
– Our office will work closely with an accountant to calculate the payroll of your company and the attorney will be submitting the application on your behalf to a third party bank that is affiliated with the PPP.
What documents are required to file the application?
– Incorporation documents (including EIN & type of Corporation)
– Most recently filed tax return;
– Any and all documents showing proof of total payroll for previous year or the most recent payroll.
Attorney Help Applying for a SBA / PPP loan
Our attorneys work together with accountants to estimate the correct payroll amount and properly submit your application. For professional advice and expert assistance with filing your PPP application, contact the Law Offices of Inna Vernikov at (212) 729-3497.
