It's an especially difficult time to be in the energy industry. Amidst this COVID-19 crisis, we have witnessed a historical slide in crude oil prices. It is requiring those in the industry to consider all available avenues to sustain their business for both now, and for the future. The Paycheck Protection Loan provision in the proposed Coronavirus Aid, Relief, and Economic Security Act (CARES Act) may offer much needed financial assistance.
The Paycheck Protection Loan provision of the CARES Act provides for the following:
- 100% Federal government guaranteed loan, with interest not to exceed 4% payable over 10 years (no borrower guarantees, no collateral, no fees)
- Loan amount is based on previous years' payroll (including limits per employee), with a maximum loan of $10,000,000
- Potential loan forgiveness when payroll maintained during COVID-19 national emergency period
To qualify for the Paycheck Protection Loan, your business must have less than 500 employees. There are no other limits (revenue, etc).
HoganTaylor's Energy Practice
If you would like more information about the Paycheck Protection Loan program and how it could potentially benefit your business, please contact Energy Practice Lead, Jeff Koweno, at jkoweno@hogantaylor.com, or any other member of the HoganTaylor Energy practice.
We'll continue to monitor developments in the availability of financial assistance to those in the energy industry. We’re committed to keeping you advised as the exact nature and impact of the health event and government’s response becomes more clear..
INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.
|
|
