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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

Phillips Murrah attorney Alison Cross

Phillips Murrah Director Alison 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 welcomes two new attorneys to legal team

Phillips Murrah is proud to welcome Justin G. Bates and Phoebe B. Mitchell to our Firm.

Justin G. Bates is a litigation attorney who represents individuals and both privately-held and public companies in a wide range of civil litigation matters.

Phillips Murrah welcomed Justin and Phoebe to the Firm’s Litigation Practice Group as associate attorneys. Each represents individuals and both privately-held and public companies in a wide range of civil litigation matters.

Justin attended the University of Oklahoma College of Law where he earned American Jurisprudence Awards for Civil Procedure II and Torts. He served as a member of the American Indian Law Review and was a member of the Phi Delta Phi Legal Honor Society. Justin also had the privilege of arguing in the final rounds of both the 2017 1L moot court competition and the 2018 Calvert Competition before an esteemed panel of Oklahoma justices.

Justin was born and raised in the metro area, where he currently lives. In his free time, he enjoys traveling, watching college football, discussing what could have been for the Oklahoma City Thunder, and spending time with friends and family.

Phoebe attended the University of Oklahoma College of Law where she earned the American Jurisprudence award for Civil Procedure II and was on the Dean’s Honor Roll.

Phoebe B. Mitchell is a litigation attorney who represents individuals and both privately-held and public companies in a wide range of civil litigation matters.

She served as the Research Editor and Candidate Mentor on the Oklahoma Law Review and was a member of the Phi Delta Phi Legal Honor Society. Phoebe also served as a mentor on the Dean’s Leadership Council, was selected as a Dean’s Leadership Fellow, and was selected to serve on the Academic Appeals Board.

While in law school, Phoebe had the opportunity to clerk as a judicial intern for the Honorable Judge Rob Hudson of the Oklahoma Court of Criminal Appeals.

Phoebe was born and raised in Oklahoma City and received a Bachelor’s Degree from Vanderbilt University in Nashville, Tennessee. She enjoys Thunder basketball, OU football and cheering on her Vanderbilt Commodores in her spare time.