Federal Relief and Loan Programs
CBIG Law advises on a variety of tax law matters and as they relate to and affect certain businesses and partnerships, especially as they relate to investment funds. Because each situation can vary widely from another, we suggest you give us fill out our contact form at the bottom of this page so we can schedule a time and see how we can help you.
We anticipate that the coronavirus has completely altered the ways we conduct business. And we see evidence that the IRS has changed our tax scenarios - in many ways, in a positive direction. However, some changes will likely have negative impacts.
One such area is in regard to the Payroll Protection Program (PPP). Some borrowers have discovered that the PPP loans received come with greater scrutiny and disclosure of how the borrowed funds are used and who is receiving the benefits. Many private investment funds have found that if they are to keep the loan proceeds and use them to pay certain payroll and other expenses, the partnership will also be required to divulge some of their limited partners' personal information. Most private equity funds would rather not expose such information to the government and would thus need to return the PPP loan proceeds or risk default on the loan.
Any Borrower with concerns as to a “necessity of the loan request” from the government will be given until May 18, 2020 to repay their PPP loan. That deadline has now been extended to May 18. Borrowers do not need to apply for this extension.
CBIG Law has a team of experts ready to advise our clients on Corporate Law related matters in the San Francisco area. We extend our legal experiences to serve clients of all types and sizes. Give us a call now.