Understanding the PPP loan process can be tricky, and knowing who is eligible can be even more confusing. As a result of a high number of businesses taking advantage of the PPP loan program, fraud investigations have also been on the rise. In order to understand how to protect your business while also utilizing these necessary public funds, there are a few basics to know — including whether or not your business qualifies for PPP funding.
Before applying for a PPP loan, it’s important to consult a Miami construction lawyer with Cotney Construction Law. An attorney will be able to help you understand what you are entitled to and how to protect your business. Below, an attorney shares a few PPP basics.
Related: Your Second Chance at a PPP Loan
What Is a PPP Loan?
The Paycheck Protection Program (PPP) was passed by Congress as part of the Coronavirus Aids, Relief, and Economic Security (CARES) Act in March 2020 and was renewed in December 2020. The program was designed to provide forgivable loans to small businesses during this period of economic uncertainty that could be used to cover payroll costs, mortgage, interest, rent, and utility costs over the period the loan was made.
Who Is Eligible for PPP Funds?
Contractors who currently pay employees may qualify for PPP funds. The Small Business Administration (SBA) has issued guidelines on who is eligible. These program guidelines state:
“Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.”
To be eligible, a company, including a contractor firm or building company, must have fewer than 500 employees and must not have previously been investigated for fraud relating to the program.
How to Apply for PPP Funds
To apply for PPP funds, you must provide all information in good faith. One of our Miami contractor attorneys can walk you through the application process and review your application before it is submitted. They will also help you understand your rights if you are denied funds and would like to appeal that decision.
Simple Steps To Protect Your Business
There are a few ways to apply for a PPP loan while safeguarding your business. These steps include:
- Providing correct information to the best of your ability on your application.
- Maintaining and saving copies of all supporting documentation issued in the loan application. There’s no better way to prove that you were acting in good faith than to keep an ongoing record that you were attempting to diligently follow program requirements.
- Do not apply for PPP loans from multiple lenders.
- Ensuring that the PPP loan money is only used for interest, rent payments, utility costs, insurance premiums, and payroll expenses. Do not use the funds for any other reason.
You can also protect your firm by hiring a Miami construction lawyer with Cotney Construction Law. Not only do we advise our clients on legal matters, but we also provide a myriad of other valuable services for construction businesses, including contract review, employment law advice, and litigation and arbitration services. We also advocate for clients involved in licensing complaints, permitting issues, stop-work orders, business immigration, and more.
If you would like to speak with one of our Miami contractor attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.