On March 27, 2020, President Trump signed into law the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act includes the Paycheck Protection Program (“PPP”), which is offering $349 billion in forgivable loans through the United States Small Business Administration that small businesses impacted by the coronavirus pandemic may use toward costs, including payroll and rent.
Independent contractors and self-employed individuals may apply for PPP loans beginning April 10, 2020. A self-employed individual is an individual who (1) regularly carries on any trade or business (within the meaning of section 1402 of the Internal Revenue Code), and (2) would be entitled to receive paid leave during the taxable year pursuant to the Emergency Paid Sick Leave Act if the individual were an employee of an employer (other than himself or herself). Certain individuals who consider themselves self-employed may not be eligible for relief under the CARES Act.
Under the PPP, the maximum loan amount is the lesser of $10 million and an amount calculated using a payroll-based formula created in the CARES Act. PPP loans will be available through June 30, 2020 or until the funds are depleted. Due to high demand, we recommend that you apply as soon as possible.
The PPP offers forgivable loans in a maximum amount equal to eight weeks of payroll costs, including benefits and other costs. In addition to payroll, PPP recipients may use PPP funds to pay interest on mortgages, rent and utilities.
If you require assistance in determining eligibility or if you wish to learn about programs available under the CARES Act, PPP, state relief programs or if you have other business-related inquiries, please contact Michael Salad, Esquire via e-mail at email@example.com or direct dial at (954) 889-1850 or Craig Panholzer, Esquire via e-mail at firstname.lastname@example.org or direct dial at (954) 889-1856.
Michael Salad is a partner in Cooper Levenson’s Business & Tax and Cyber Risk Management practice groups. He concentrates his practice on estate planning, business transactions, mergers and acquisitions, tax matters and cyber risk management. Michael holds an LL.M. in Estate Planning and Elder Law. Michael is licensed to practice law in New Jersey, Florida, New York, Pennsylvania and the District of Columbia.
Craig Panholzer is an associate in Cooper Levenson’s Business & Tax practice group in its Florida office. He concentrates his practice on business transactions, bankruptcy, estate planning, probate, and tax matters.