An Update On The PPP (CONT’D FROM PAGE 6)
Board Converting NEWS INTERNET DIRECTORY
the eight-week period from the date of the loan origina- tion. SBA clarified that the date the lender first disburses the PPP loan to the business is considered the date of the loan origination. The eight-week period therefore begins on the date of the first loan disbursement. Q: How do I know what amount of my PPP loan will be forgiven? A: The exact amount is impossible to determine with cer- tainty until you complete the eight-week period and apply for the loan forgiveness. There are, however, some gener- al guidelines. First, the amount forgiven cannot bemore than the origi- nal loan. Also, at least 75 percent of the amount a business seeks to have forgiven must be spent on payroll costs. The potential forgiveness amount may also be reduced by the reduction of the number of full-time employee-equivalents employed by a business during the eight-week period, versus the applicable comparison period (either February 15, 2019 to June 30, 2019 or January 1, 2020 to February 29, 2020 usually selected at the borrower’s discretion). Additionally, for employees making less than $100,000 per year, if their compensation is more than 25 percent lower during the eight-week period than the employees’ normal compensation, the excess reduction in pay will be deducted from the amount that can be forgiven. The law does potentially allow borrowers to cure some of the re- ductions mentioned above by June 30, 2020, but it is still unclear as to what the specific requirements will be to cure these deficiencies and maximize the amount of the loan that is forgiven. There is still more clarity (hopefully) to come. While the guidance by the SBA clears up some issues, there will still be many considerations that impact what borrowers de- cide to do when they receive their PPP loans. Should they immediately hire all laid off workers back? Should they re- store employee’s compensation back to the pre-pandemic levels? Decision on such issues will depend on the borrow- er’s intent for the loan. Is the business concerned mostly with maximizing forgiveness, or is the business taking out the loan to provide security against an uncertain future? Is there a specific portion of the PPP loan that a business wants to target for forgiveness? Depending on the answer to these questions and the anticipated impact of this pandemic on a business, each borrower will need to determine the use of the PPP loans that best meets its needs. Joel J. Greenwald, Esq. is Managing Partner at Green- wald Doherty LLP. Reach him at (845) 589-9300 x108 or via e-mail at jg@greenwaldllp.com. Visit greenwaldllp for more information, including access to the firm’s COVID-19 Employment Law Resource Center.
OHIO BLOW PIPE/ADVANCED AIRSYSTEMS www.obpairsystems.com For 85 years the Ohio Blow Pipe company and its whol- ly owned subsidiary, Advanced Airsystems, have provided the corrugated and folding carton industries with systems and products to process scrap. We engineer, fabricate, in- stall, service, provide system audits, and offer a wide range of scrap systems, dust collection systems and products to include cyclones, under roof AIR-SCREEN™ systems, pit belt systems, CLEANAIR dust collectors, Mist-Clone™ dust control systems for vacuum feeds, material handling fans, ductwork, switch valves, airveyors, balers, shredders and OM Partners makes paper makers and packaging compa- nies more profitable and more efficient by optimizing their operations. By utilizing mathematical solvers and advanced technology, corrugated producers remark that their corru- gators and converting equipment run faster with less waste and higher on time delivery achievement within weeks after implementation. The OMP System consists of a comprehen- sive and fully integrated set of modules for order promising, forecasting, capacity planning, stock management, corru- gator optimization, production scheduling, transport plan- ning and automatic data collection. dust briquetters. OM PARTNERS www.ompartners.com/corrugated
PAPER AND DUST PROS, INC. www.paperanddustpros.com
We custom design, install and service air conveyed scrap and dust collection systems. Our unique APS® is smaller, lighter, and more reliable than current cyclones. Contact us to learn how the APS® System can enhance your operation.
PROFERO SYSTEMS, INC. www.ProferoSystems.com
Profero Systems the leader in double facer heating and traction section conversions along with other performance enhancing products. Featuring products from Contact Bars and Compensating Rolls to New Glue Machines and Double Facers.
GF PUHL www.gfpuhl.com
GF PUHL designs, manufactures and installs air conveyed scrap & dust collection systems for the packaging and cor- rugated industries. With 36 years of experience, USA and International. Re-manufactured balers, filters, blowers and shredders available.
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April 27, 2020
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