Cea Legal Offering Free Consultations for COVID-19 Government Assistance

NEW YORK, April 2, 2020 (Newswire.com) - ​​Following the outbreak of COVID-19, federal, state, and local authorities are arranging loans with favorable terms and grants to businesses and individuals economically affected by the crisis. On March 27, 2020, President Trump signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act upon unanimous approval of Congress. One key section is the “Paycheck Protection Program,” a lending program administered by the Small Business Administration (SBA) to provide loans to small and medium-sized businesses affected by the COVID-19-induced economic crisis in the United States.

“The Paycheck Protection Program is a significant component of the CARES Act,” says Michele Cea, founder and principal of Cea Legal. “It’s a great lending program open to a plethora of businesses, and even carries an opportunity for loan forgiveness.”

Businesses eligible for the Paycheck Protection Program are enterprises, nonprofits, tribal business concerns and veteran’s organizations that were in business as of Feb. 15, 2020. The business must either have less than 500 employees, or be a sole proprietorship, a self-employed individual, or an independent contractor.

The maximum loan amount a business can qualify for is 2.5 times the average monthly payroll cost during the one-year period prior to loan date. “Payroll costs” shall be broadly construed as to include salaries, wages, retirement contributions, covered leave, health care benefits, and other expenses.

Most interestingly, businesses that receive a loan under the “Paycheck Protection Program” shall not return any part of the sum granted, as long as the funds are used to cover fixed operating costs (rent, payroll, utilities, health care benefits, mortgage interest obligations) during the eight weeks following the receipt of the loan.

Different factors may alter the forgiveness percentage of the loan. Any unforgivable amount will carry a 4% interest rate and a 10-year maturity date.

Special additional protections are available to businesses operating in New York, both on the state and city level, depending on where the business is located.

“We aim to assist business owners in identifying and evaluating each form of assistance available to them based on their geographical and financial qualifications,” says Cea. “State and city governments have instated several protections and programs during this unprecedented time to ensure business survival and continued financial health.”

In applying for assistance programs, applicants must disclose updated financial documents, tax returns, payroll statements, corporate documents, and details on existing debts.

Cea Legal will assist with reviewing the requirements of applicants with respect to each loan or grant available, and with collecting the relevant documentation in order to apply to the lender administering each program. Free consultations have been made available during the months of April and May to specifically discuss obtaining COVID-19 related loans and grants.

To learn more, visit cealegal.com or call (646) 512-5740.

Source: Cea Legal, P.C.