On the surface, it seemed that the Small Business Administration (SBA) Paycheck Protection Program (PPP) offered business owners a quick and easy solution to keep their employees working, while securing some much-needed cash during this period of economic uncertainly. However, the intricacies of the loan, along with recent modifications to the program, have made the PPP much more complicated than many business owners initially perceived.
On June 16, the National Limousine Association (NLA) hosted a live and interactive webinar on Facebook to help operators with the intricacies of the PPP, particularly with changes enacted on the brand-new plan since it went into effect in April. According to NLA President Robert Alexander of RMA Worldwide, the goal of the session was to “provide some useful information that will make the changing guidance and PPP rules easier to follow.”
On the webinar, Alexander was joined by Bill Faeth of Limo University and Louie Perry and Bill Smith from Cornerstone Government Affairs, the NLA’s lobbying organization. The Cornerstone duo have been on the “cutting edge of regulations” with Smith, in particular, having extensive experience with SBA affairs.
The foursome took live questions from the more than 100 operators participating in the webinar. Initial questions addressed future PPP payouts, with Perry speculating that Congress will open up more money after the current summer recess. He theorized that money may be provided for untouched sectors, such as our own industry.
The majority of the Q&A dealt with the recent changes to the PPP loans, most notably the extension of the forgiveness period and the update in the 75/25 Full-Time Equivalency (FTE) rules to 60/40. Perry and Smith also elucidated on three safe harbors that allow loan forgiveness for operators who don’t meet the full FTE requirements.
Operators who were unable to “attend” the session or have any questions regarding PPP loans are encouraged to visit view a recording of the webinar on the NLA’s Facebook page. Since the PPP is new, and was virtually put into play in a matter of weeks at the beginning of the pandemic, there are intricacies and adjustments that operators will need to navigate that differ from many government programs that undergo months of proposals and revisions. It’s important that owners ask questions to their lenders and do their due diligence so that they remain in compliance to maximize loan forgiveness.
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