Paycheck Protection Program (PPP) of the CARES Act and expanded through the Paycheck Protection Program and Health Care Enhancement ActThe Beyster Institute and the Rady School of Management are available to help companies understand the unprecedented laws that were passed to provide companies and their employees with assistance during this unforeseen economic disaster. The Paycheck Protection Program received an additional $310 billion in funding through the Paycheck Protection Program and Health Care Enhancement Act signed into law on April 24th with the Small Business Administration accepting their first applications on April 27th. There were 1.66 million PPP loans approved by the Small Business Administration (SBA) through April 16th disbursing $342 billion. The onus is on the borrower to certify in good faith the qualification for the loan. The loan may be forgivable in whole or in part if the proceeds are used to fund “…payroll costs, covered mortgage interest payments, covered repayment, and covered utilities.” The Beyster Institute is available to assist as follows:
- Review the loan Paycheck Protection Program Borrower Application Form addressing any concerns regarding the original determination of the loan amount included.
- Review the certification that you qualified for the loan in light of the ability to repay the loan prior to May 7, 2020, will be deemed by SBA to have made the required certification in good faith.
- Review that the PPP loan proceeds were or will be used for payroll costs, covered rent, covered utilities, covered mortgage interest, interest on other debt and refinancing an SBA EIDL loan (made between January 31, 2020, and April 3, 2020) during the 8 week period following receipt of the PPP loan with at least 75% of the PPP loan used for payroll costs.
- Assist you in the calculation of the amount of PPP loan proceeds that will be forgiven due to the use to pay payroll costs, covered rent, covered utilities and covered mortgage interest during the 8 week period following receipt of the PPP loan with at no more than 25% of the forgiven cost from non-payroll costs. Beyster has developed templates to help companies model and calculate the amount of loan forgiveness. The company (borrower) must submit an application to the lender with documentation and a certification that the documents are “true and correct” and requested forgiveness “was used to retain employees” and other allowable costs. Beyster’s model will assist you in generating the supporting documentation.
- Helping you understand how Paycheck Protection Program loans impact the other relief acts, specifically sick/family leave credit and retention credit.
- What other loans are available, such as Economic Injury Disaster Loan (EIDL), and how these loans are interrelated.
- Assisting you with modeling your alternatives in addressing the 2020 ESOP repurchase liability projecting the impact on the current and future company’s cash flow, impact participant balances, and impact on other equity compensation arrangements.
Assisting Companies with COVID-19
The Beyster Institute and the Rady School of Management can assist companies either through an initial free conference call to answer questions or through a consulting engagement to help you work through the issues. If you would like to establish a conference call with one of our associates, please fill out the Consulting Questionnaire.
Webinars and Education
The Beyster Institute will be hosting periodic live webinars on topics directly related to the COVID-19 crisis. Click here for a complete list of upcoming Beyster events. This page will be updated as new topics are added to the schedule. Click the topic below to access the recording and download the PowerPoint slides for previous webinars.
Other Helpful Resources