2020 has proved challenging at best for millions of Americans, not least of all due to the global upheaval caused by the COVID-19 pandemic. Many small businesses and households are struggling just to make ends meet. According to a study conducted by the Proceedings of the National Academy of Sciences of the United States on the impact of COVID-19 on small businesses, 43% of small businesses sampled closed temporarily due to COVID-19, businesses cut employment by 39%, and the average company only had enough savings for business expenses to last two months without business. Enter: the CARES Act.
In response, the American government passed landmark stimulus legislation aimed at preventing further business closures and financially assisting unemployed Americans through such an unprecedented economic catastrophe – the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the CARES Act, small business owners may apply for a Paycheck Protection Program (PPP) designed to provide small business owners with up to $659 billion in funds they can use for paying their employees, paying rent on their business space, paying utilities, or other overhead business expenses.
To implement this program effectively, the government relied on certified lenders to distribute the limited funds locally to qualified businesses and a long, intensive application and eligibility process. This application process commonly required the use of a certified public accountant (CPA), as well as attorneys and consultants, working long hours to ensure all the relevant information was included and the application was submitted quickly.
These professionals weren’t expected to work for free, however. The PPP is set up to pay for the services of the lenders, CPAs, and other professionals needed for a successful application through a structure outlined in the legislation itself without touching the borrowed money intended for the business owner. Unfortunately, for many small business owners, this has not been the case.
McCune Wright Arevalo, LLP, has brought a case against several banks and credit unions who have outright refused to pay for CPA or attorney fees associated with filing a PPP application, despite their obligations outlined in the CARES Act. Lenders are required to pay CPAs, attorneys, and consultants the following:
- 1% for loans of $350,000 or less
- 0.5% for loan between $350,000 and $2 million
- 0.25% for loans over $2 million
If you are a small- to mid-sized business owner who is now stuck with the bill for services you needed to seek out to complete your application for the PPP loan, the commercial litigation attorneys at McCune Wright Arevalo, LLP, can attain justice for blindsided Americans like you just trying to stay afloat. Call (909) 345-8110 or contact us here to learn your rights!
Protecting Small Business Owners in Southern California, Illinois, and New Jersey
The CARES Act stimulus was a much-needed step in the right direction for economic relief for millions of Americans. We must not allow unscrupulous corporations undermine the economic assistance many so desperately need. McCune Wright Arevalo, LLP, has always sought to defend the rights of small- to mid-sized business owners in complex commercial legal matters. Our team’s history of successes speaks volumes. We were proud to have successfully gone toe-to-toe against banks and credit unions, securing several resolutions including a $35 million settlement and a $70 million settlement for unfair overdraft fees.
To learn more about how we can help you seek justice, contact us today or call (909) 345-8110 for a free consultation!