Mainebiz webinar explains how to make the most of federal relief
Over 700 Maine businesspeople got expert advice on making the most of the new federal Paycheck Protection Program in a webinar hosted by Mainebiz Wednesday morning.
The webcast offered a primer on the $349 billion in loans available through the program, created March 27 by the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act.
The panel discussion featured Amy Bassett, Maine district director of the U.S. Small Business Administration; Katy Rand, partner at Portland law firm Pierce Atwood LLP; and Seth Webber, principal at BerryDunn, an accounting and consulting firm also based in Portland. Mainebiz Publisher Donna Brassard moderated the free, hour-long webinar.
Just as the country is responding to an unprecedented emergency, federal assistance to business is at an unprecedented level, the panelists agreed.
“I’ve worked in the federal government for my entire career, and I’ve never seen a program of this magnitude before,” said Bassett. Since Paycheck Protection funding became available last Friday, she noted, lenders nationwide have written 302,000 loans totaling over $80 billion.
More than 1,400 loan applications by Maine businesses for a total of more than $410 million had been received by Monday morning, Mainebiz reported.
But the financial feeding frenzy has caused confusion. To clear it up, Bassett, Rand and Webber responded to questions and explained eligibility requirements for the PPP, borrowing limits, allowed uses for the loan proceeds, the much-touted forgiveness offered for the loans, and a variety of other topics.
Under the CARES Act, Paycheck Protection loans can be forgiven if at least 75% of the proceeds are used for payroll costs. But Rand said that’s not the only attraction.
“The terms of the loan aren’t bad, even without forgiveness,” she said.
Webber urged businesses applying for the financing to prepare tax information carefully, work closely with the lenders who issue the PPP loans, and most of all, be patient.
“There’s a lot of confusing information out there, but everyone’s trying to do their best,” he said.
A recording of the webcast will soon be available on the Mainebiz website.
Wednesday’s webinar was one of two Mainebiz is presenting on the CARES Act. A second webcast, focusing on Economic Injury Disaster Loans and other financing available, is scheduled for Thursday, from 10-11 a.m. The webinar is free but registration is required.
Click here for more information and to register.
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