Withum COVID-19 Bill Update – 7/7/2020

Main Street Lending Program is Now Open:  The MSLP has been “baking” for over 3 months and is finally ready for primetime.  Withum has a new article with more details on terms and eligibility here.  The program has garnered some controversy as some have taken the view that it was overly restrictive and not borrower friendly.  Some banks have also indicated they will not participate in the program.  That said, it is now available to borrowers and can be a new source of working capital. 

Reminder Section:  (what should I be doing):

• Talk to your payroll company about claiming the employer payroll tax deferral and employee retention credits (ERC) that were made available in the CARES Act.
• Talk to your payroll company about claiming the qualified sick/family leave refundable tax credits (from FFCRA, passed prior to the CARES Act).
• Consider speaking with your lender to discuss changes to terms of existing debt facilities.
• If you have already received a PPP loan, start forecasting how you intend to spend the funds and how you can qualify for the highest amount of loan forgiveness possible.  If you are not forecasting 100% loan forgiveness, then most likely you should seek assistance regarding your particular situation.  Withum believes the vast majority of borrowers should expect and plan to receive 100% loan forgiveness.