- Office of Attorney General Maura Healey
Media Contact for AG Healey’s Office Issues Advisory to Small Businesses Seeking to Obtain Paycheck Protection Program Loans
Boston — Attorney General Maura Healey today published an advisory providing support for small businesses looking to apply for loans through the Paycheck Protection Program (PPP).
The advisory is designed to answer common questions about the program and provide information for small business owners looking to apply. The AG’s Office is making the advisory available on its website and is also reaching out to various small business trade associations to urge them to have their members consider applying for PPP assistance.
“This program has provided an important lifeline to many of our small businesses across the state, so we need to make sure they are getting the relief they need,” said AG Healey. “If you need these funds, now is the time to apply. Our advisory helps answer frequently asked questions and provide support to small businesses that are struggling.”
The advisory includes an FAQ that addresses a number of questions that small businesses may have including: Is my business the right size for this loan? Do I have all the documentation I need? How much should I borrow? How does loan forgiveness work? What are the biggest pitfalls? How do I avoid a big tax bill?
Congress created the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was signed into law on March 27, 2020. The PPP provides small business loans backed by the U.S. Small Business Administration (SBA).
There is more than $100 billion still available for loans through this program. Currently, June 30 is the last date to submit a PPP loan application, and there is no guarantee that the federal government will extend the program or that Congress will allocate any further money once existing funds are expended.
AG Healey has been a national leader in calling for improvements to the PPP to be more inclusive and fairer for small businesses owners. Last month, she led a coalition of 24 state attorneys general calling for Congressional Leadership to make critical changes to the program to ensure that the funds are distributed fairly and equitably. The AG’s Office later provided supplemental comments to the SBA on a series of proposed program rules, and continues to urge the federal government to make adjustments to the program as needed. Most recently, the AG’s Office provided comments about a new set of SBA proposed rules, focusing on the need to create a smoother process for loan supplementation, standards to avoid the issuing duplicative loans, and the importance of directing funds to small businesses that need it most.
The AG’s Office is currently providing information that small businesses can use to connect them with resources that they may need, including information about loans and grants, rent abatement, insurance coverage, and ways to cut expenses. Free resources for small businesses are being offered through a comprehensive initiative, “Small Business Strong,” designed to provide guidance and expertise on addressing immediate challenges, finance and accounting, human resources, marketing, operations, and law. This initiative provides services in both English and Spanish. Small Business Strong is a public/private partnership organized by State Street Corporation, The Greater Boston Chamber of Commerce, McKinsey & Co., Bank of America, PwC, Foundation for Business Equity, The Boston Foundation, Federal Reserve Bank of Boston, Eastern Bank and Nutter, McClennen & Fish LLP. and several other organizations throughout Massachusetts. The AG’s Office also joined a COVID Relief Coalition partnership to provide pro bono legal assistance to vulnerable small businesses. The Coalition’s intake form for small businesses to receive free legal services is available here.
The AG’s Office is also gathering information about how small businesses have coped during the pandemic, what resources have been helpful, and whether small businesses have been subject to any unfair practices. If you are the owner of a small business in Massachusetts, please consider sharing your experiences by filling out the AGO’s Small Business Experience form.
Visit the AG’s COVID-19 resource page for information about how the AG’s Office can provide support during this crisis.
These matters are being handled by AG Healey’s Insurance and Financial Services Division.