Our team is working hard to keep our clients and our business affiliates updated on all things related to COVID-19. As a reminder, we have developed the Corrigan Krause Coronavirus Crisis Team (CKCCT) to help you receive the information and timely answers you need. Please reach out directly to our crisis team by sending an e-mail request to ckcrisisteam@corrigankrause.com. The team will be notified of your inquiry and will respond directly to you within 24 hours.
Visit our website to see all of our recent COVID-19 updates.
PPP Updates
Good News for Borrowers with PPP loans of $50,000 or less
On October 8, the SBA released Form 3580S, a simpler loan forgiveness application for PPP loans of $50,000 or less.

According to Secretary Steven T. Mnuchin, “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs. Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly.”

It is important to note that the new application allows borrowers with PPP loans of $50,000 or less to ignore the Full Time Equivalent (FTE) and wage reduction calculations required of other loan forgiveness applicants. These borrowers are still required to spend their PPP funds on qualified expenses including, payroll costs, rent, utilities, mortgage interest, but will likely have their entire loans forgiven, even with a workforce or wage reduction. The borrowers will still be required to make some certifications and provide documentation to the lender for payroll and non-payroll costs.

Click here to view the simpler loan forgiveness application. 
Click here to view the instructions for completing the simpler loan forgiveness application. 

If you have questions about whether you should move forward with your application, or if you would like assistance navigating the forgiveness process, please reach out to our Coronavirus Crisis Team who is happy to help. 
Important PPP Update for Borrowers Mid-Transfer
On October 2, the SBA released a Procedural Notice for PPP Loans regarding transfer guidelines.

For purposes of the PPP, a “change of ownership” will be considered to have occurred when:

  1. At least 20 percent of the common stock or other ownership interest of a PPP borrower (including a publicly-traded entity) is sold or otherwise transferred, whether in one or more transactions, including to an affiliate or an existing owner of the entity.
  2. The PPP borrower sells or otherwise transfers at least 50 percent of its assets (measured by fair market value), whether in one or more transactions.
  3. A PPP borrower is merged with or into another entity.

Regardless of any change of ownership, the PPP borrower remains responsible for:

  • Performance of all obligations under the PPP loan
  • The certifications made in connection with the PPP loan application, including the certification of economic necessity
  • Compliance with all other applicable PPP requirements

Borrowers must notify their PPP lender in writing of the transaction and provide a copy of the proposed agreements before the change of ownership. 

There are no restrictions on a change of ownership if prior to closing the sale or transfer, the PPP borrower has repaid the note in full or completed the loan forgiveness process and the SBA has remitted funds to the PPP lender.

If you have a PPP loan and are in the middle of or considering a change of ownership, please reach out to your advisor for further guidance. 
PPP Borrowers Beware
We’ve heard of some borrowers who have recently received suspicious emails regarding their PPP loan. Beware that many scams have popped up as an attempt to retrieve sensitive information from borrowers. If you have any questions regarding the validity of an inquiry regarding your loan, be sure to connect with your personal lender before submitting or sending any sensitive information.  
Firm Updates
Phone 440.471.0800 | Fax 440.471.0801 | www.CorriganKrause.com