Pete is a business lawyer and trusted partner to his corporate clients who has been solving problems and adding value for business owners for over 25 years. Pete’s practice focuses on corporate law, business transactions, mergers and acquisitions, contracts, commercial finance, debtor/creditor relations, business disputes, non-profit organizations, real estate, and trusts and estates. He counsels businesses involved in manufacturing, distribution, marketing, e-commerce, technology, health care, pharmaceutical research, professional services, real estate, construction and retail. In addition, Pete has experience with start-up ventures, family-owned businesses, limited liability companies and 501(c)(3) public charities. He also represents individuals and families in estate and business succession planning.
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The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, provides $349 Billion in SBA 7(a) forgivable loans to businesses and nonprofits with fewer than 500 employees [see endnote 1), including sole proprietors, the self-employed and independent contractors. Known as the Paycheck Protection Program (PPP), the maximum available loan amount is 2.5 times your average total monthly payroll costs, capped at $100,000 per employee on an annualized basis [see endnote 2]. The loan proceeds can be used for any authorized business purpose, but to the extent used to pay payroll costs, healthcare benefits, eligible rent or mortgage interest payments and utility costs over an eight (8) week period from the date the loan is made, the loan can be forgiven (the lender is paid by the SBA). There is no collateral and no personal guarantees required. There is no requirement regarding exhausting other available credit. The SBA pays the lender all loan origination fees and has waived many of its otherwise onerous requirements. To the extent any loan balance is not forgiven, the interest rate will be fixed at the time of the loan somewhere between 0.50% and 4.0% [see endnote 3], amortized over up to 10 years, payable over two (2) years, with all payments deferred for six (6) months. There is no prepayment penalty. The program is only available through June 30, 2020, but funds are limited, so don’t wait. For more detailed information, see below and PPP Information Sheet.