San Luis Obispo Attorneys Summarize Strategies for Business Recovery After COVID-19
As Californians look forward to the lifting of COVID-19 restrictions on June 15, businesses are revamping and reorganizing in preparation. The attorneys from San Luis Obispo Toews Law Group, Inc. have preorganized some strategies that can help businesses return to business as usual.
These strategies include:
- Knowing what June 15 means for California businesses
- Applying for Payroll Protection Program loan forgiveness
- Knowing the local resources that are available
What happens on June 15?
Capacity and distancing restrictions are lifted for restaurants, grocery stores, shopping malls, movie theaters, churches. Most everyday places will be open as normal, with some recommended protocols for event venues.
For outdoor events with more than 10,000 people and indoor venues with 5,000 or more people, the state recommends that venues have a process to verify vaccination/negative test in place. The vaccination/negative test protocol remains in place until October 1, 2021 and the state will revaluate the recommendations starting September 1, 2021.
For more information and specific details for, visit California’s Blueprint for a Safer Economy.
Apply for loan forgiveness
One of the first things to do is to apply for forgiveness of the Paycheck Protection Program loan (PPP) loans. Your business is a candidate for loan forgiveness if the loan was used to keep employees on the job at their full wages (at least 66-percent of the PPP money must be spent on payroll costs), and the remaining proceeds paid for operating costs, mortgage payments, utilities and protective equipment for employees.
PPP funds spent for uninsured recovery from property damage incurred during civil unrest in 2020 is also considered forgivable. Businesses that spent most of the loan on eligible expenses can still get a portion of the loan forgiven, but will need to repay the unforgiven portion.
To obtain forgiveness you will need to apply for PPP forgiveness with the original lender. Complete all of the forms and provide all necessary documentation to your original lender. The lender will then send the packet to the Small Business Administration, which determines whether the loan qualifies for forgiveness. If a lender denies a loan-forgiveness application, the business can request a review by the SBA. If the SBA denies forgiveness, the borrow can appeal to the SBA office of hearing and appeals within 30 days.
Most California county governments have reopening resources and information available for businesses. In San Luis Obispo County, those resources can be found on recoverslo.org. The resources include:
- Access to financial assistance including the Restaurant Revitalization Fund, Shuttered Venues Grants, SBA Economic Injury Disaster Loans, grants programs, including the Shuttered Venues Grants and a link to the California consolidated grants portal;
- Cal/OSHA Emergency Temporary Standards for California employers;
- Business guidance including local agencies that can help, and how to get general training;
- An employer playbook outlining how to reopen safely;
- Where to get legal advice.
The San Luis Obispo business attorneys from Toews Law Group, Inc. would also like to remind business owners that effective January 1, 2021, California law temporarily exempts limited liability companies, limited partnerships, and limited liability partnerships from paying California’s $800 minimum franchise tax for their first year of operation.
With the implementation of Assembly Bill 85, California LLCs, LLPs, and LPs, which are formed after January 1, 2021, and before January 1, 2023, are also exempt from the minimum franchise tax in their first taxable year.
As business attorneys in San Luis Obispo, Toews Law Group, Inc. can meet a range of business legal and consultation needs. We serve as business and legal consultants on debt restructuring, sales, purchases, and reorganizations of troubled businesses.