Coronavirus Business Updates – June 2020

PPP Loan Forgiveness
munns, busine, loan, small, program, bogin, forgivene, florida, billion, businees

The Coronavirus/COVID-19 pandemic and its impacts remain in the news.

Starting off, and without the ‘super long‘ list of prior articles on that topic, see the past history.  Now you are updated.
Several new related matters have recently arisen.

Did you ever think you would receive a comprehensive outline of the Paycheck Protection Program updates from the American Horse Council  (of which this writer has been a member for a number of years)? Well, it is true. And here it is... To quote:

Congress Continues to Revise Landmark “Paycheck Protection Program” for Small Business

While Congress and the Administration debate the timing and parameters for the next coronavirus relief package, enacting narrow fixes to the Small Business Administration’s (SBA) signature Paycheck Protection Program (PPP) has drawn bipartisan consensus.  On June 5, the President signed the bipartisan “PPP Flexibility Act,” which passed the House by a vote of 417 to one and the Senate by voice vote.  The law modifies the landmark small business loan program through the below provisions:

  • It reduces the amount of loan proceeds that recipients must use to pay workers, as a pre-condition for loan forgiveness, from 75 percent to 60 percent.
  • For those not receiving loan forgiveness, it extends the repayment period from two to five years.
  • The new law allows small business the dual options to participate in PPP loan forgiveness and payroll tax deferral. 
  • It extends the coverage period for loan forgiveness from eight to 24 weeks, or up to December 31, 2020, whichever is earlier.
  • The law extends the June 30 rehiring deadline for furloughed workers to December 31, 2020.  It also creates re-hiring flexibility for businesses not able to hire at pre-pandemic staffing levels caused by closures and other restrictions arising from state actions to combat coronavirus.  

In the wake of passage of the clarifying legislation, on June 16 SBA issued two new forms to help borrowers document expenses under the program.   The agency has created a two and one-half page “EZ” application for the self-employed and other classes of borrowers which requires fewer calculations.  To view a copy of the EZ form. To view a copy of the revised “full loan forgiveness application,” which is four and one-half pages in length. 

In late April, Congress passed legislation to authorize an additional $350 billion for PPP, after the program depleted its initial $310 billion allocation under the CARES Act.   Since that time, demand for funds from the small business community has flattened.  According to SBA, out of the $660 billion allocated to PPP so far, the agency has delivered loans to approximately 4.5 million borrowers and still has more than $120 billion in the bank. 1

To consult with an experienced business law lawyer today, call 855-686-6752

In support of the PPP, the U.S. Small Business Administration has issued “Lender Match”, a specific tool to assist businesses in connecting with lenders. For the SBA’s press release about Lender Match.

Further, in light of the upcoming primary and general elections, Governor Ron DeSantis released an Emergency Order giving limited flexibility to county election supervisors regarding mail-in ballots, government employees who work at polling sites, and the daily closing of public schools which serve as voting locations. To see the Emergency Order. 2

And finally, it may be that Florida will enjoy a temporary ‘break’ from the hurricane season due to a phenomenon of dust originating from the Sahara Desert. As a practical matter that means Florida’s individuals, families, and businesses have additional time to prepare. So please do just that. 3

One. More. Thing. Bogin, Munns & Munns has undertaken to assist businesses who have potential business interruption insurance claims. 4

For information about Bogin, Munns & Munns’ response to Coronavirus readiness.
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Note: Citations are given to the sources to respect the original authors’ copyrights.

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1 Source  https://view.exacttarget.com/?qs=d64ea180a6577a39df3043e11ac71967ae8d884bdb2dba5289c8175af1146aa2826dd64277992cf24aaa6768040fb66fc614cc41136887c2594281cafd05e929ca949680ff0b7a4d0958d24d57f0da8f.

2 https://www.tampabay.com/florida-politics/buzz/2020/06/17/desantis-issues-emergency-elections-order-ahead-of-florida-primary/.

3 https://www.tampabay.com/weather/2020/06/18/dust-from-the-sahara-desert-is-putting-a-pause-on-hurricane-activity/.

4 https://www.boginmunns.com/being-prepared-for-the-unexpected/
– For more information, call Philip N. Kabler of the Gainesville, FL office of Bogin, Munns & Munns at 352.332.7688, where he practices in the areas of business, banking, real estate, and equine law. He has taught business and real estate law courses at the University of Florida Warrington College of Business Administration and Levin College of Law and is the President-Elect of the Eighth Judicial Circuit Bar Association.

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NOTICE: The article above is not intended to serve as legal advice, and you should not rely on it as such. It is offered only as general information. You should consult with a duly licensed attorney regarding your Florida legal matter, as every situation is unique. Please know that merely reading this article, subscribing to this blog, or otherwise contacting Bogin, Munns & Munns does not establish an attorney-client relationship with our firm. Should you seek legal representation from Bogin, Munns & Munns, any such representation must first be agreed to by the firm and confirmed in a written agreement.

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