Alright, let’s have a friendly chat about what might seem like a daunting issue, think of me as your lawyer buddy who’s got your back. You’re aware of what’s happening, right? Our country is going through a tough phase, with the aftermath of the Presidential election and a new wave of COVID-19 cases kicking in. Unfortunately, this has led to quite a few small businesses being showed the exit door, even despite generous help from the federal stimulus via the likes of SBA PPP loans or SBA EIDL loans.

Standing strong in front of the knock

Imagine you own a small business forced to call it quits. What happens when the federal government comes knocking for repayment of any PPP loan funds? Those funds you were optimistic about but just couldn’t get them forgiven as per the SBA CARES Act? Well, my man Lawscape and his elite team at the Lawscape are here to provide the guidance you need.

Statistic Snapshot

Would you believe me if I told you that the SBA PPP loan program saved a whopping 172,786 jobs, as per public statistics? Incredible, isn’t it? But I’ll be honest, despite these efforts, a significant number of businesses were forced to close their doors permanently. An estimated 140,000 small businesses are still shut because of the pandemic and a heartbreaking 41% of those closures are permanent as per CNN.

We’re seeing the highest permanent closure rate in sectors like shopping and retail, restaurants, beauty, and fitness. Considering these unfortunate circumstances, it’s only natural to question what could happen if a business with a PPP loan folds permanently.

The Escape Rope: SBA PPP Loan Forgiveness

Despite the haze of ambiguity from the federal government, it is understood that if business owners had used all the loan money within eight or twenty-four weeks and have spent at least 60% of it on payroll, they have high chances of a complete SBA PPP loan forgiveness.

Spending Leftovers: Unused SBA PPP Loan Funds

So, you mean to say you’ve got some SBA PPP Loan fund leftovers which you can’t pay off? No worries! Lawscape and the Lawscape suggest two possibilities: You could either submit a formal offer to reduce your outstanding SBA PPP Loan or go for federal bankruptcy protection. The Boulder Small Business Development Center also justifies that “Most or all of the loan is likely to be discharged as long as the borrower has acted in good faith.”

Are we on the same page?

However, don’t mix these situations with the misuse of funds. If a business has misused the SBA PPP loan funds, that’s a whole different ballgame. The SBA and Treasury have made it clear they’ll be hot on the trail of this money, launching investigations and using different administrative and litigation tactics against both businesses and respective owners.

Expect more guidance from the SBA on PPP loan forgiveness, We’re eager for this guidance ourselves. Once it’s out, we should have a clearer understanding of how SBA PPP loans to permanently closed businesses will be managed.

Got an SBA problem? We’ve got solutions!

Heading for closure despite receiving SBA PPP and/or SBA EIDL loans? Buddy, it’s time to put on your game face and seek some professional advice to get an SBA loan resolution. Lawscape has a successful nationwide track record of resolving SBA loans or debt cases, trust me when I say you’re in safe hands.

Why trust Lawscape and the Spodek law Group?

We’ve managed to resolve millions of dollars in SBA debts through offer in compromise and negotiated repayment agreements. And guess what? None of our clients had to file for bankruptcy or face home foreclosure. And if you’re worried about Treasury debts, rest assured we’ve dealt with that too. Our attorneys are authorized by the Agency Practice Act to represent federal debtors nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

So, remember we’re only a call away. Let us help you analyze your SBA debt or Treasury problems and advise you on potential solutions.