Day Pitney remains committed to providing quality legal counsel, while protecting our clients and employees. For more information, please visit our COVID-19 Resource Center.
The purpose of the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is to provide economic relief to small businesses adversely impacted by the COVID-19 crisis and to help these businesses retain their employees by providing forgivable loans. The proceeds of these loans must be used for payroll costs, mortgage interest, rent and utility costs.
A torrent of statements from regulators, politicians and media has created a wave of questions among PPP borrowers regarding the allowable use of proceeds and criteria for loan forgiveness under the PPP. Every day, the Day Pitney team meets to review frequently asked questions from clients and formulate consensus responses. Pending the long promised guidance from the SBA and other government agencies, Day Pitney decided to launch this frequently asked questions and answers (FAQ) on the PPP to address client questions about use of PPP proceeds and future applications for loan forgiveness.
Please note that information provided is fact specific and may vary depending on circumstances. Also, due to the quickly changing environment, information provided is time sensitive and could change as regulations are revised and updated. Day Pitney will update this FAQ as rules and regulations change, so check back periodically.
Click here to access the PPP FAQ, and complete the form to identify the questions to which you would like to receive further information.