Are you considering filing for Chapter 11 Bankruptcy, but have received something from the Paycheck Protection Program (PPP)? If so, you will want to keep reading.
What is PPP?
The Paycheck Protection Program, or PPP, was an Small Business Administration loan. It was aimed at helping businesses retain employees during the COVID-19 crisis.
What Does This Mean For You?
The U.S. Small Business Administration, ended the PPP in August 2020 and is not accepting any additional applications. So, what happens if your business has run into trouble and you have defaulted on another loan? Well, some banks may be able to force the repayment of PPP loans in full. Currently there is a case in Florida trying to do just that: force the full repayment of the PPP loan for a business that filed for Chapter 11.
So, what does this mean for you? Well, if the court decides that the PPP needs to be repaid in full, this could set precedent for other courts to do the same. Meaning, you may have to repay the PPP loan you received. This could have big implications for your bankruptcy filing later. For now, the case will need to be monitored to see what is the outcome.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.