May 6, 2020
Martin Borosko , managing member of Becker LLC, was interviewed by Craig Johnson, Senior Managing Editor of Staffing Industry Review and Staffing Industry Analysts Daily News for their article PPP - Act Fast.
Martin Borosko, managing member of law firm Becker LLC, noted staffing firms often have questions about eligibility. New guidance in the last two or three weeks has raised some questions about eligibility and whether firms qualify. The bar was low when they were first offered. In fact, some firms, such as Shake Shack, were given loans that they ultimately returned after public criticism arose.
If firms aren’t eligible borrowers, that can create difficulties if they do take the money, he says. The government plans to review all borrowers above $2 million to see if they executed the certificate of eligibility in good faith. If not, that would be akin to getting the PPP loan by fraud. However, the government recently extended the window for companies to return loan money to May 14 from May 7.
Borosko also says some staffing firms had raised questions on the impact of taking a PPP loan on client companies and their ability to borrow PPP funds. Two companies can’t borrow for the same employees and there has been some confusion. However, it’s clear that the best candidate to borrow money is the staffing firm and not the client, he says.
The PPP Loan Program: Martin Borosko, Esq. is interviewed by SIA Analysts Daily News