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Did you get PPP funding and do you regret it
May 11, 2020
Did you get PPP funding and do you regret it
            PPP recipients are becoming concerned with increasing messages regarding the criteria for getting the loan and criteria that may later be used for forgiveness.  Applicants certified that ““current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
            There was little if any explanation of what that phrase meant, but I believe that you can read it at face value:  Did you have “economic uncertainty” that made the “loan request necessary to support ongoing operations”?  What level of psychological make-up does one need to have to be “uncertain”, how will “necessary” be defined, and how will “ongoing operations” be evaluated.  Perhaps you were down to your last few bucks when you made the PPP application or flush with money and business when you received the funds.  I do not believe this will be the standard that will be applied, in hindsight and retrospect.  Rather, I believe that the uncertainty of the times, which no-one can question, will be the overriding justification for the application and the retention of the PPP funds.  The effects of the pandemic have not yet reached its maximum impact and probably won’t at least until well after the PPP period ends, June 30, 2020.  Many businesses continue to collect outstanding receivables; many switched products or services; others cut expense [which unquestionably affected some other persons or businesses adversely].  
            The early warnings were to public companies, which the SBA figured had other sources of raising money.  You are not a public company.  Even if you have a line of credit you could have drawn on, it isn’t for 1%; it doesn’t have the prospect of forgiveness; it isn’t without strings attached, including collateral and a guarantee.  
            I believe that private small businesses [and SBA considers that to be businesses with less than 500 employees and payroll in the millions monthly] all face economic uncertainty.  We believe that unless SBA really reverses course and changes the rules significantly, you should have little difficulty justifying your right to the loan and loan forgiveness if you follow K&K’s advice on disbursing the funds. 
            It’s not for us to question the wisdom of the government’s decision to deal with the pandemic in the way it did: shutting down the economy and massive stimulus packages including the PPP funding.  It appears to us the after implementing the PPP program the SBA decided to first shame and then scare businesses so they would withdraw applications or return the PPP funds.  That was on the first round when it became apparent to SBA what was apparent to everyone else, that the PPP funding would be used up in hours and would be entirely insufficient.  The SBA intensified its “warnings” on the second round, and it worked to some extent because funding seems to be more readily available to the “really” small companies.  SBA is already reminding recipients of PPP funds that there will be investigations and audits with the singular purpose of recovering the PPP funds and criminal prosecution for those who deserve it. 
            K&K PPP clients have been funded.  We are continuously sending out memorandum to address the evolving rules on use of the funds and employee issues.  We will monitor how the funds are being disbursed and we will continue to guide you so that you will achieve 100% forgiveness of the loan or return any unused portion.  Use the funds for the intended purpose, maintaining employee head count, payroll and other permitted usage; that’s the key to achieving our goal. This will be the final invitation to engage K&K for Phase Two of the PPP program.  If interested, contact Stacy Spector,Esq at or call her at 516 747 6700 x 304.  Don’t wait until your forgiveness has been denied or SBA investigators and auditors are knocking on your door; we can’t help you then.
            The information currently available from SBA on this subject is found in the Treasury Department’s Q&A:
            “Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date? 
            Answer: SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.” 

Reaching K&K during the lock down
     During this crisis the most efficient way to reach our attorneys is via email.  You can also call and if not picked up, leave a message and your call will be returned promptly.
    Here are a few departments to contact directly:
alarm / security / pers / fire department:  Ken - or call and leave a message with return number at 516 747 6700 x 301
health care professionals:  Jennifer Kirschenbaum,Esq 516 747 6700 x 302;
Alarm contracts:
  Eileen Wagda 516 747 6700 x 312​
Alarm licensing:  Alison Gallub,Esq 516 747 6700 x 317; or Eileen Wagda, Licensing Administrator, 516 747 6700 x 312
Employment issues:  Kieran Bastible 516 747 6700 x 315; or Jennifer Kirschenbaum,Esq
Concierge Alarm Clients have full access through our Concierge Program Coordinator, Stacy Spector, Esq  516 747 6700 x 304 or 
Collections:  [courts are shut down at this time, so don't expect much progress.  We will however continue to prepare papers on our end so that we will be ready when the courts normalize]  Kathleen Lampert  516 747 6700 x 319
Pending litigation:  Caroline Wallet,Esq  516 747 6700 x 305 and Maureen Biel,Esq 516 747 6700 x 303  MBeil@Kirschenbaumesq,com
Bankruptcy and debt collection issues:  Steve Sheinwald,Esq  516 747 6700 x 309 or Scott Dillon,Esq  516 747 6700 x 318

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You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301