Agency owners are scrambling to take advantage of the CARES Act, and in particular the Paycheck Protection Program (PPP) loans but there’s a lot we don’t know because there’s a lot that is not set in stone.
There is a total lack of clarity around this how the PPP works – from application all the way through repayment and potential forgiveness. The 800-page act says one thing and the SBA says another. As I describe it in my conversation with guest Stephen Katz, we are repairing the plane while we’re flying it.
Stephen is the chair of the business practice of Peckar & Abramson, a law firm in New York City with offices in 10 US cities and affiliates in 14 countries across the globe. I asked Stephen to joins us because of his decades of experience working with the SBA and other government programs designed to serve businesses. He’s spent the better part of a month interacting directly with the SBA, Treasury Department and his legal peers to try to wrap their arms around the CARES Act and specifically the PPP loan.
I knew he‘d provide some answers so that we agency owners can plan for the future and protect what they have now. It is important to know what you’re getting into. And as details get locked down, we’ll have Stephen back to help us navigate this murky waters.
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What You Will Learn in This Episode:
- How Stephen developed expertise in business law
- The economic impact of 9/11 vs. COVID-19
- Everything agency owners should be aware of as they apply for the PPP
- What we know about the loan forgiveness provision of the PPP loan so far
- How to prove you are using the proceeds of your loan appropriately
- Everything you need to know about EIDL loans
- Why bigger banks have been hesitant to fund CARES Act loans
The Golden Nuggets:“This is the advice I’d give to all the businesses out there: Be a little conservative and err on the side of caution. That’s rarely a recipe for disaster.” @katzbike Click To Tweet “The PPP is a lifeline designed to keep businesses open that are otherwise going to close. The certifications are not to be taken lightly from a legal or a moral perspective.” @katzbike Click To Tweet “The PPP is intended to help agency owners keep the same headcount at full pay. That is the heart of the act and that is how you should try to understand its nuances.” @katzbike Click To Tweet “Don’t assume that, based on what you know today, your loan is going to be forgiven. Things change all the time and new regulations are being introduced frequently.” @katzbike Click To Tweet “Untamed panic is causing agency owners to rush to the front of the line for the PPP without fully understanding what they’re getting themselves into.” @katzbike Click To Tweet
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Ways to contact Stephen Katz:
- Website: https://www.pecklaw.com/
- Facebook: https://www.facebook.com/peckarabramson/