OUR ASSOCIATION MEMBERS ARE UNAWARE THEY MAY BE ELIGIBLE FOR A PPP LOAN

Sponsored Content

Businesses and Non-Profits should have a much easier time getting close to 100% of their PPP Loans Forgiven and converted to government grants that do not need to be paid back due to the PPP Flexibility Act which was signed into law on June 5, 2020.

Instead of having to use 75% of PPP funds on payroll, the Bill lowers this to 60% allowing businesses to have a greater percentage of non-payroll expenses Forgiven. The number of weeks during which PPP Loan funds have to be spent was extended from 8 weeks to 24 weeks. This helps businesses that originally believed they would not be able to spend PPP Loan funds within the original 8-week time frame and have their loan forgiven.  Businesses will now have an additional 16 weeks in which to use the PPP funds and have their loan Forgiven. This increased time frame makes Forgiveness more accessible to additional types of businesses that are the last to be allowed to reopen. These types of businesses include restaurants, gyms, salons, theaters, as well as other businesses deemed non-essential. These changes will help businesses who did not initially apply for the PPP Loan because they could not rehire and reopen by June 30th, and were unable to use 75% of the loan amount for payroll in only 8 weeks.

A PPP Loan is calculated by multiplying Average Monthly Payroll Costs by 2.5.  Thus, a PPP Loan equates to 10.8 (4.33 weeks per month x 2.5) weeks of your payroll costs.  As noted above, the number of weeks you have to use the PPP Loan to have it Forgiven is 24 weeks.  Thus, if you will be continuing your payroll for at least 10.8 weeks out of the next 24 weeks your PPP Loan will be 100% Forgiven and converted to a federal grant that you will not need to be paid back.  You also get to spend up to 40% of your PPP loan on Forgivable non-payroll expenses such as rent or lease payments, mortgage interest and utilities.  To repeat, if after you receive your PPP Loan you pay salaries for 10.8 weeks and also continue paying your rent, utilities and mortgage interest you should be able to have 100% of your PPP Loan Forgiven and converted to a government grant.

The new Bill also extends the repayment term from 2 years to 5 years.  This will provide businesses with additional time to repay the portion of their PPP Loan that was not Forgiven as well as lower the monthly amount that has to be repaid.

An Applicant that receives a PPP Loan of less than $2,000,000 now benefits from the following safe harbor rule as per FAQ #46 of SBA Guidance issued on May 13, 2020, “…Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.  SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees”.  Thus, while all PPP loans are subject to audit by the SBA, as noted above, those below $2,000,000 do not have to prove economic need as originally mandated in FAQ #31 that was published on April 23, 2020. AES believes that FAQ #46 has now motivated companies to apply for a PPP loan that were initially apprehensive about the appropriateness of applying for a PPP loan.

The net effect of this legislation is that more Businesses and Non-Profits can apply for a PPP Loan knowing that they might be able to get close to 100% of the PPP Loan amount Forgiven and turned into a government grant that does not need to be repaid!

However, time is short as the deadline to apply for a PPP Loan is June 30th. AES urges Businesses and Non-Profits to apply for a PPP Loan as soon as possible before time runs out.

Tragically, all businesses and non-profits are now facing the most daunting economic challenge of our lifetime. AES is reaching out to fellow members of the business community because they believe they can help!

There is still over 100 BILLION DOLLARS in PPP funding available and AES’s mission is to educate and help eligible businesses and non-profits receive these funds.

Many businesses and non-profits do not even realize they may be eligible for this government assistance. AES’s goal is secure PPP funding for all who need it.  Given the difficulties we face as a nation, and the personal hardships we and our families are experiencing, it is important to know there are good people in society who are willing to help others. Whether it be volunteering at food banks or at medical facilities, people are doing what they can to pitch in.  Asset Enhancement Solutions LLC (“AES”) is devoting its efforts to help businesses and non-profits overcome the enormous economic challenges caused by this horrendous event.

As an Agent for multiple lenders, AES does not charge a fee for the assistance it provides which include a combination of advisory services, troubleshooting and loan processing.  It is this “Triple Threat” that distinguishes Asset Enhancement Solutions, LLC from lenders that just process loans and service providers who are providing consulting services to their clients regarding PPP loans.

The information below describes how AES helped a business that thought they were not eligible for a PPP loan and a more detailed discussion of the complimentary VIP PPP services they offer.  Feel free to share this with your colleagues, customers, suppliers and friends.

The following is a true story of a Staffing Company with 1,200 Employees that recently received a $6.9 million PPP Loan after reading information sent out by a trade association they are members of.

A staffing Company Florida with 1,200 employees did not believe they were eligible for a PPP loan because they had over 500 employees.  The CFO and the Company are members of various trade associations and trade groups and received an email from a financial association providing guidance to its members regarding PPP Loans.  The CFO read this email that was sent out on behalf of Asset Enhancement Solutions, LLC (“AES”) which noted that just because a business was turned down by a few lenders it still may be eligible for a PPP Loan.  The email also noted that businesses and non-profits with over 500 employees could be eligible for PPP Loans under certain circumstances.  The CFO reached out to AES on Saturday, May 9th at 4:11 p.m., by 5:44 p.m. the AES team had a conference call with him to gain an understanding of the business.  Due to the complexity of the situation they hosted a conference call with the CFO and an outside consultant retained at AES’ expense to determine PPP eligibility for complex situations for prospective clients.  An AES senior consultant worked closely with the CFO using their proprietary forms and submitted the PPP loan application to one of the bank lenders they serve as an agent for on May 12th. The Client was approved on May 13th and received their $6.9 million PPP loan on Thursday May 21st.   Thus, a business with 1,200 employees which did not think it was eligible received a $6.9 million PPP loan because they read an email (similar to this) and memo received in an email from a trade association that was trying to help it members.

To learn how AES’s VIP Treatment helped close other complex PPP loans and other types of financing for other businesses and non-profits please Click Here.

Asset Enhancement Solutions, LLC has an Agency Agreement with a boutique bank in New York and is still accepting and processing PPP loans of $100,000 to $10,000,000 nationwide regardless of the existing banking relationship. They have direct contact with the senior decision-makers of this bank and PPP loan processing is smooth and swift.  For PPP loans less than $100,000 they utilize a different lender with whom they also have a strong relationship with.  AES has successfully processed over 700 PPP Loan applications.

There is No Cost to the applicant for AES’ services.

Many lenders quickly disqualify PPP loan requests if the application has any degree of complexity. AES has successfully closed many complex PPP Loans. AES never shies away from complex situations; they embrace and thrive on them and find creative solutions to financial challenges, whether it be a PPP loan or a credit facility for a middle-market company with financial difficulties or aggressive growth opportunities.

Some of the Complex PPP Loans AES Closed include:

•           Businesses & Non-Profits with over 500 employees

•           Businesses that were purchased after February 15, 2020

•           Businesses & Non-Profits that were in operation for only part of 2019

•           Businesses & Non-Profits that were turned down by other lenders

•           U.S. Subsidiaries of foreign owned companies

•           Businesses with foreign ownership

•           Portfolio Companies of Private Equity firms

•           Businesses & Non-Profits that did not think they qualified for the PPP loan

•           Businesses & Non-Profits that commenced operations in early 2020

•           Partnerships

•           Non-Profits affiliated with Foreign run Non-Profits

While others are just accepting and processing applications, AES is trouble-shooting every phase of the PPP loan process, from determining applicant eligibility to helping the applicant through the details and complexities of the process. AES has a strong team of 15 experienced professionals who are providing incredible VIP/White Glove service to their clients. Six members on their team are CPA’s.  They have retained outside consultants at their expense to determine PPP eligibility for complex situations for prospective clients.

AES is committed to whatever it takes to get the applicant approved by their lender!  AES is not competing with the services that Accounting Firms and Law Firms are providing to their clients in connection with the PPP Program. When AES’ friends at commercial banks have to say “No” to an applicant, they are a trustworthy, professional, and non-competing source that can accept and process PPP loans nationwide.

Click here to learn more and schedule a meeting with one of AES’ senior PPP consultants. Or AES can  be reached via phone at 516-767-0100.  After Business Hours you can leave a voice message and your message will be forwarded to them 24/7.

And should your business or non-profit organization be in need of non-traditional financing during this turbulent time learn more here or please contact AES to see if they can assist you.

AES never shies away from a challenge; they have the experience and expertise needed to find a creative solution to financial challenges. Please forward this article to the members of your association as Asset Enhancement Solutions, LLC (“AES”) is here to assist your members survive and thrive.

About Asset Enhancement Solutions, LLC
Asset Enhancement Solutions, LLC ("AES"), is a financial advisory firm that provides both Investment Banking and Consulting Services to companies considering important transactions such as selling a company, acquiring a company and raising capital.  AES specializes in arranging debt and equity financing for companies with challenges. Unfavorable challenges such as operational, legal, tax, financial or liquidity issues or positive challenges such as opportunities for growth, acquisitions and long-term success. AES works with middle market companies, public companies and small businesses.

AES arranges financing for businesses when traditional banks say no, and as such, is a resource for businesses, their accountants and attorneys. AES can help banks maintain customer relationships by arranging financing for their customers with non-traditional funding sources. Asset Enhancement Solutions, LLC has arranged over $500 million in financing for both private and public companies in a variety of industries and geographical areas. They can manage the process of sourcing debt or equity financing which businesses need for short and long-term growth or survival. AES never shies away from adversity; they embrace and thrive on it.  AES has the experience and expertise needed to find Creative Solutions to Financial Challenges.

To learn more about how Asset Enhancement Solutions, LLC can assist you with your transaction, please contact: Neil Seiden, President, Asset Enhancement Solutions, LLC, (516) 767-0100 neil.seiden@assetenhancement.com www.assetenhancement.com

 

This is a sponsored content. NYSAE does not endorse this company or service, and readers are solely responsible for their own, additional research.