New Payroll Protection Program Loan FAQs & Checklist/Worksheet Calculator for Transport Providers: COVID-19 Transportation Update - April 6, 2020
Windels Marx FAQs and Checklist/Worksheet for Transportation Companies Seeking COVID-19 Loans
Starting on Friday, April 3, 2020, transportation companies were able to start filing applications for the Paycheck Protection Program (PPP) loans. In this difficult time, transportation providers can benefit from these 2-year loans to pay for payroll costs, rent, utilities, or interest payments for mortgages or loans for the 8 weeks after receiving the loan funds. Since the loans may be forgiven in whole or in part, these PPP loans can be grants. Even if part of a PPP loan is not forgiven, the PPP loan has a fixed 1% interest rate, and borrowers have a 6-month loan deferment available, although interest will accrue. Many companies have questions and need guidance about the PPP loan program eligibility. Matt Daus and his team at Windels Marx have been fielding questions about the PPP loan program for the past week. To be of assistance, we have prepared the Paycheck Protection Program Frequently Asked Questions for Transportation Providers to address the many, many questions that transportation companies have been asking. The FAQs for Transportation Providers may be found HERE. We have also prepared a PPP Loan Checklist and Worksheet that transportation companies may use as a resource to assemble the required documents – and try to determine the amount of your PPP loan. The Checklist and Worksheet also includes information to assist transportation companies in calculating unemployment benefits under the CARES Act. The Checklist and Worksheet may be found HERE.
If you are interested in additional information about seeking loans and assistance related to COVID-19, please reach out to MATT DAUS at mdaus@windelsmarx.com or (212) 237-1106. To assist the industry at its time of need, our team is providing free advice to industry members!
Matt Daus Discusses Financial Assistance for Taxi Drivers in the News
For taxi drivers, COVID is a brutal dilemma - COVID has caused a sharp decline in taxi ridership across the nation. One available option for taxi drivers to receive financial relief, according to with Matthew Daus, partner and chair of the Transportation Practice Group at New York-based law firm Windels, Marx, Lane & Mittendorf, is to file for a small business loan under the Payroll Protection Program established by the CARES Act. The principal on the loan can be forgiven if used for business operating costs and will be the equivalent of roughly two and a half months of the business’ income, with interest rates fixed at 1 percent. Eligible costs would include the interest on medallion loans. Click Here to Read More
