Paycheck Protection Program

April 3, 2020 is the first day to apply for the new “Paycheck Protection Program.” This new loan program from the Small Business Administration will cover up to 8 weeks of payroll payments during the COVID-19 crisis. Self-employed folks can apply starting April 10th.

I’m impressed the fast track bank loan is this short and easy to fill out. If you have the Average Monthly Payroll number and your Business TIN or EIN number, the loan should take you under 15 minutes to fill out. Send the loan application to a bank where you already have a good customer relationship. The roll-out program is messy and choatic. Give yourself a leg up from the competition and apply to the bank where the tellers greet you by your first name.

In case you are sheltering in place at home and don’t have quick access to business records, the EIN number will be listed on the electronic copy of your 2018 or 2019 taxes.

Here is my personal struggle to get the “Average Monthly Payroll” number. In my self-employment business, I only take out money to pay myself when times are “good.” I make more money in the summer as a lawyer than I do in the winter. To get the “average monthly payroll, “ I’m taking the “profit” from my 2019 taxes and dividing that number by 12. I will let you know if the banks accept this formula. I’m hopeful that becuase my calucation is so closely tied to my 2019 self-employment taxes, this formula won’t be a problem. If anyone has suggestions for a better formula, I’m eager to learn.

The total loan amount for the Paycheck Protection Program is up to 2.5 times the “average monthly payroll.”

Now, I’m going to explain how the structure this potential loan into something more like a “gift.”

Let’s pretend a small business has an average payroll of $1,000 a month. The total loan funds under the Paycheck Protection Program (PPP) would be times 2.5 or $2,500.00. If a business, pays an employee (like an administrative assistant or a waitress) the whole $2,500.00 in wages over the 8 week timeline and sends the correct documentation to the Small Business Administration, then the PPP “loan” will turn into a “gift.” In order words the federal government is making a deal with you. If you borrow money to pay an employee, you don’t have to pay it off. In banker terms, the loan is “forgiven.”

You could also use 25% of the $2,500, or $625.00 to pay for certain overhead expenses like rent, mortgage payments or utility payments. This $625.00 payment would be “forgiven".

Whatever money you borrow under the PPP, that doesn’t get used by these “acceptable expenses” will turn into a loan at a very low interest rate and very favorable terms. I think you get 6 months before you need to start paying back the loan.

Now, I’m not 100% sure how paying myself as a self-employee works under this new law. I’m not making any payments to myself until I’m reading all the fine print. The short application process and the promise that I can pay some of my commerical rent during this challenge of COVID-19, means I’m most likely going to apply on April 10. I hope other people do too.

I will include a direct link to the Paycheck Protection Act Program. Please let us know about your experiences with this program.

Let’s make it through the storm, together!

https://content.sba.gov/sites/default/files/2020-04/Paycheck-Protection-Program-Application-Fillable.pdf

The Emotions Behind Property Law Decisions

“I might cry” is a phrase my clients sometimes say during our initial client consultations. Emotions are expected and encouraged in my workplace. Land ownership in West Virginia is often tied to the rules of inheritance. Inheritance means talking about the death of family members. Death is a painful, messy business. Just like there are kind neighbors who bring turkey casseroles after a death in the family, sometimes wild turkey casseroles are made from my rural town, there are kind lawyers, and accountants and title examiners. Find professionals who will let you cry easily on the phone. Trust your emotions. Good decisions are made with the heart, as well as the head. One of the best things you can do to honor the dead, is to make active and thoughtful decisions about land ownership rights for future generations. Best wishes in your healing journey.

Yours,

Abigail

Property Law Basics: Deeds

Most of a real estate lawyer’s work focuses on a single piece of paper: the deed. The deed is a legal document which contains a description of the property boundaries (the survey), and the current ownership rights. Deeds are highly formalized and contain some ancient language. One of my favorites is “witnesseth” which is a fancy way for saying “pay attention” and a word I might have to bring back to settle my kids’ fights over their Minecraft houses. Don’t let the formal tone of a deed scare you. Here is a quick cheat sheet that will help you make sense of your property deed.

All property deeds must have a “metes and bounds” property description which is usually in single space type on the first page of the deed. This is the weird language that sounds like a pirate talking about a map to her buried treasure—-”go 72 feet to a sunken pine oak, then go Northwest 800 feet to an old cherry tree.” Modern survey language usually describes property lines by using direction of a compass (North/East) and degrees.

Every deed must contain an accurate survey of the property. If you are giving the whole property to another person, a real estate lawyer can copy the former survey language into a new deed. If you are giving a piece of property to a child or friend, then you will need to pay for a survey of the new property lines prior to making the new deed. If there is confusion about where property lines are located, please pay for a new survey before selling a house or building a new garage.

I remain your friendly, neighborhood property lawyer,

Abigail Benjamin

Grand Opening on September 22, 2016

Many thanks to all the people who have helped nurture this new environmental law office! I will be sworn in to the WV State Supreme Court at 8 AM on Wednesday, September 21, 2016 in Charleston, WV and the Southern District of West Virgina United States District Court at 2 PM the same day.*  I have already started scheduling client calls starting on Friday, September 22, 2016.

Please visit for a Grand Opening Reception from 5 to 6 PM. Wine and Cheese provided.

Remember if you hugged me during my 10 week  Bar Exam Prep marathon you count as "family" for my 10% off friends and family discount.

 

*My swearing in at the Northern District of West Virginia United States District Court in Martinsburg, WV will be scheduled shortly.