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SBA disaster loan summary

Gavel to Gavel appears in The Journal Record. This column was originally published in The Journal Record on April 2, 2020.

This Gavel to Gavel column is a summary of our full-length Q&A on Small Business Administration (SBA) loan programs.


By Phillips Murrah Director Alison J. Cross and Attorney Kara K. Laster

Phillips Murrah Attorney Kara K. Laster and Director Alison J. Cross

On March 27, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, which expanded two Small Business Administration loan programs – the Paycheck Protection Program and the Economic Injury Disaster Loan Program.

Small business owners, in particular, are anxious to receive relief under the historic act. Below is a summary of highlights of these two expanded lending programs:

• PPP loans: Eligible businesses may use PPP loans for payroll costs, health care, interest on mortgage payments, rent, utilities, and interest on any other debt. Eligibility requires that applicants had no more than 500 employees per physical location, were operational prior to Feb. 15, had employees on payroll, and paid wages and payroll taxes. They may receive the lesser of 2.5 times the average monthly payroll costs during the prior year or $10 million.

The dates to begin applying are small businesses and sole proprietorships on April 3 and independent contractors and self-employed individuals on April 10. The application deadline is June 30, but businesses should apply as soon as possible because there is a funding cap.

Businesses need to submit a PPP loan application along with payroll documentation to an approved lender. Businesses must certify that they suffered substantial economic injury from COVID-19 and that funds will be used to retain workers and maintain payroll, or make mortgage payments, lease payments, and utility payments.

• EIDL loans: Eligible businesses may use EIDL loans for working capital and they can be up to $2 million with interest rates of 3.75% for small businesses and 2.75% for nonprofits. Loan amounts are based on actual economic injury. Eligibility requires that applicants had no more than 500 employees in existence as of Jan. 31 and that they suffered substantial economic injury from COVID-19.

Additionally, if the loan is made before Dec. 31 and is $200,000 or less, there is no guarantee requirement. Applications should be submitted directly to the SBA, which can be found on its website.

There are numerous additional stipulations and details related to these two small business disaster loans that cannot fit onto this column format, including loan forgiveness criteria, amount determination and approved lenders. Applicants should consider discussing their application with legal representation.

Phillips Murrah attorneys Kara K. Laster and Alison J. Cross contributed to this column.

Alison J. Cross, Elaine D. Flores join Phillips Murrah Dallas office

OKLAHOMA CITY (May 8, 2019) – Phillips Murrah P.C. is pleased to announce that Alison J. Cross and Elaine D. Flores have joined the Firm as Directors in its Dallas office. Alison and Elaine are transactional attorneys with an emphasis on commercial lending and real estate matters. They bring the number of Texas-licensed Phillips Murrah attorneys to thirteen.

Image of Alison Cross

Alison Cross

Alison Cross works with both lenders and borrowers in commercial finance transactions. Focused primarily in the areas of commercial and industrial lending, real estate lending and health care lending, she documents loans secured by a variety of collateral, including real property, equipment, inventory, securities accounts and other assets.

Alison has experience with loan workouts and restructurings, as well as foreclosure of commercial real estate, oil and gas interests, and aircraft. Her experience also includes documentation and negotiation of construction loans and loan restructurings. She has represented national and regional banks, healthcare institutions, manufacturing companies, and non-profits, as well as other borrowers and lenders.

Image of Elaine Flores

Elaine Flores

Elaine Flores focuses her practice on a wide variety of commercial lending and real estate transactions. Her experience includes documentation and negotiation of credit facilities for both lenders and borrowers, including acquisitions, single bank and syndicated credit facilities, middle market and asset-based loans, construction financing and loan restructurings.

Elaine’s practice spans multiple industries including healthcare, oil and gas, manufacturing, real estate, retail and hospitality.

Both Alison and Elaine have also represented buyers and sellers of commercial, retail and other types of real estate, as well as landlords and tenants in leasing transactions.

Alison is a member of the National Association of Women Lawyers and Texas Wall Street Women as well as a Board Member of the Southwest Association of Bank Counsel. She has served as a member of the United Way Young Leaders Society since 2008.  D Magazine recognized Alison as one of the Best Lawyers in Dallas in 2018 and 2019.

Elaine is a member of the Dallas Women Lawyers Association and the Texas Association of Bank Counsel. She is a member of the Junior League of Dallas, the Baylor University Women’s Council of Dallas, and Park Cities Republican Women’s Club. She has also been recognized as one of the Best Lawyers Under 40 by D Magazine and named a Texas Super Lawyers’ Rising Star.

Prior to joining Phillips Murrah, Alison and Elaine practiced with in the Dallas office of an international law firm.


CONTACT:

Phillips Murrah – Dallas Office:
3710 Rawlins Street, Suite 1420
Dallas, Texas 75219

Main: (214) 238-2525
Fax: (214) 434-1370