As businesses are struggling to navigate the SBA Paycheck Protection Program (PPP), Mission Local sought out Stephen Klein, Managing Director of Bennett Thrasher’s Bankruptcy & Restructuring practice, for his insight on the program. While PPP loans are intended to be used to pay employees and other overhead costs during the coronavirus pandemic, business owners are weary about the forgiveness process and how they should navigate repayment versus forgiveness.
Klein believes that businesses can put their employees on payroll regardless of whether they are open to customers. He adds, “You can have the restaurant that is closed and [still] pays its people out of compassion. Those people would otherwise get unemployment benefits, so the government is paying these people either way.”
Across the country, business owners and operators are asking for more guidance on these loans and the most effective ways to use them. Legislation is expected to pass in the coming days that provides greater clarification on these matters.
To read the full Mission Local article, click here.
About Mission Local
Since 2008, Mission Local has been all up in the Mission District reporting on everything from tacos to tech, crime to culture, murals to MUNI, recording the lives and changes in the city’s oldest (and arguably, best) neighborhood. Originally a project of UC Berkeley’s Journalism School, we struck out on our own in 2014. In the summer of 2018, we became a fiscally sponsored project of San Francisco Public Press.