MPL General Counsel Corner – I’m from the government and I’m here to help…unless you don’t need the money
Feedback from my contacts tells me that the sprint out of the gates yesterday for the PPP loan processing was more like a stumble. Apparently, there were issues with the SBA portal which hampered the restart. Let’s hope it is straightened out.
I know this is the same message as yesterday, but please make sure you fully understand the business relief programs before you commit to them. Not to scare you from applying, but this morning, Secretary Mnuchin made the statement that any businesses which received a loan of $2m or more will be subject to a full audit. Your business mentors and professional advisors are here to help.
Just remember what President Ronald Reagan said the nine most terrifying words in the English language are: “I’m from the government and I’m here to help.”
If you take the relief money and don’t need it, you could be subject to something that is certainly not “help” from the Federal Government.
Here are some other things that may be important or relevant for you:
- What is this Force Majeure clause I have been hearing about? With the global disruptions in the supply chain, it would not be surprising to start seeing “Force Majeure” letters showing up on your doorstep. Essentially, a party to a contract can assert a defense to nonperformance of a contract where performance becomes impossible due to unforeseeable events outside of the parties’ control. I know this is a bit wordy, but it is important to understand that the applicability of this provision isn’t automatic, and you should understand the ramifications. Please reach out to your legal advisor if you receive or are thinking of sending out a Force Majeure letter.
- Tax code provisions could be the right relief option for your business: The Tax Foundation has compiled a great coronavirus tax resource, which includes a state-by-state legislative tracker and a country-by-country fiscal measures tracker. It is one of the better all in one resources that I have seen. Please contact your CPA and/or business tax professional for help in this area.
- Upcoming Webinars and Helpful Resources
- Trout CPA: Making Sense of the Paycheck Protection Program Loan Forgiveness (4/29 @ 10am)
- Stambaugh Ness Town Hall (Tuesdays 2-4pm)
- US Chamber of Commerce Webinars
- NFIB Coronavirus Small Business Update (4/29 @ 12pm)
- RKL Weekly Webinar Series (Every Friday). To be added to their invite list, please click here.
Please see all of our prior updates at the this link.