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FWW Alert -
Paycheck Protection Program Under the CARES Act
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On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act provides financial relief in an amount up to $2 trillion to states, municipalities, individuals, and businesses in response to the economic fallout from the fast-developing coronavirus (COVID-19) pandemic. The CARES Act also provides direct financial aid to American families, payroll and operating expense support for small businesses, and loan assistance for distressed industries.
The CARES Act provides $349 billion for small businesses through federally backed loans under a modified and expanded Small Business Administration (SBA) 7(a) loan guaranty program called the Paycheck Protection Program. The CARES Act designed the program to make funds available to qualifying businesses quickly through approved banks and non-bank lenders. This alert will focus on the Paycheck Protection Program.
Highlights
- Under the CARES Act, qualifying businesses include:
- Businesses with up to 500 employees or which meet the applicable size standard for the industry as provided by SBA's existing regulations.
- Businesses in the accommodation and food services industries with more than one physical location but no more than 500 employees at each location.
- Nonprofit organizations.
- Eligible independent contractors and sole proprietors.
- Loans will be available through SBA and Treasury Department approved banks, credit unions, and some non-bank lenders.
- A borrower may borrow two and one-half times its monthly payroll expenses, up to $10 million. Interest rates are capped at four percent and the maximum maturity is ten years.
- Applicable uses for the loan proceeds include:
- Qualified payroll costs,
- Costs related to health care benefits (including paid sick, medical, or family leave and insurance premiums),
- Employee salaries, commissions, or similar compensation,
- Rent,
- Utilities, and
- Interest on mortgage and other debt obligations incurred prior to February 15, 2020.
- Loan forgiveness is available for funds used to pay eight weeks of payroll and other qualified expenses.
We are here to answer your questions and help guide you through this difficult time. Please contact us at 503.228.6044 or at any of the e-mail addresses below.
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David Ludwig has more than 35 years of experience handling complicated business and financial matters. He represents small- and mid-sized companies and financial institutions in business transactions, corporate finance, commercial lending, and real estate matters. David recently served on the executive committee of the Business Law Section of the Oregon State Bar. He was by his peers for inclusion in the Best Lawyers in America® 2019-2020 for Business Organizations (including LLCs and Partnerships).
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Brian Jolly
's
law practice focuses on corporate and general business matters, as well as estate and succession planning. With more than a decade of experience representing families, closely-held businesses, and non profit organizations, Brian brings considerable working knowledge in the areas of business formation, mergers and acquisitions, and internal and external disputes in a multitude of business and estate planning matters. Brian is a member-at-large on the Executive Committee for the Business Law Section of the Oregon State Bar.
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Dean Sandow
assists business owners, executives, professionals, families, family enterprises, and individuals plan for all stages of business and life, with an emphasis on creative use of entities, trusts, and planning techniques to maximize efficiency and tax savings and minimize administration. With a keen understanding of entity structure and management, Dean creates plans to enhance and manage assets for the client and for next generation or beyond. Dean was selected by his peers for inclusion in the Best Lawyers in America® 2018-2019 for Trusts and Estates and 2019 for Corporate Law.
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Steve Bennett
handles entity formation, business succession, governance, and dispositions for businesses. He has substantial experience negotiating and drafting complex contracts in a variety of business settings. Steve emphasizes keeping the deal on track and moving forward. He represents both buyers and sellers in sales, mergers, acquisitions, and stock transfers.
Steve also has a diverse estate planning and real estate practice.
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Paul Migchelbrink
maintains a diverse business practice advising clients in a number of industries on corporate and general business matters, real estate, intellectual property, commercial finance, and lending. He utilizes his broad and extensive experience to help his clients make sound strategic decisions and grow their businesses.
Paul advises clients on matters throughout the business life cycle, including the formation and financing of new business ventures, ownership and ownership transitions, mergers and acquisitions, equity and debt financing, business contracts, and the protection of trademarks and other intellectual property rights. Paul was selected by his peers for inclusion in the Best Lawyers in America® 2020 for Corporate Law.
Contact Paul at 503.228.6044 or pmigchelbrink@fwwlaw.com
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Melissa Chapman
practices in a variety of areas including business, estate planning and administration, commercial and estate litigation, and real estate law. She is a skilled communicator and advocate for her clients, providing sound and practical guidance at each stage of the case.
Melissa has been selected by her peers to the Oregon Rising Stars list for six straight years (2014-2019) in the primary area of Business Litigation.
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Megan Oshiro
supports the firm's business, estate and succession planning, financial services and real estate practices. Megan's internship at Willamette's Business Law Clinic, Oregon DOJ in the Financial Fraud and Consumer Protection Section, and externship with the Adidas in-house counsel in Portland bring excellent skills and working knowledge to her practice.
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| Copyright © 2020 Farleigh Wada Witt. All Rights Reserved. The contents of this publication are intended for general information only and should not be construed as legal advice or opinion on specific facts and circumstances. |
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