PPP Loans & Foreign Owned Companies
The Payroll Protection Program (PPP) is a federal loan program to assist small businesses in covering payroll and other specific costs. Small businesses apply for a loan and, if they meet certain requirements, they can request for forgiveness of the amounts owed.
When the PPP came out, the loan application included a question addressing whether the applicant was a US citizen (USC) or a lawful permanent resident (LPR). This was interpreted by many to mean that small businesses owned by non USC’s or LPR’s did not qualify for these loans. However, the actual law did not impose this requirement. In April, the loan application was amended and the question regarding immigration status was removed, making the form consistent with the wording of the law.
What this means is that PPP loans are available for small businesses owned by non USC’s or LPR’s. Of course, non USC or LPR small business owners have additional factors to take into consideration when deciding whether to apply for a PPP loan. Some of these factors include:
- Public charge issues: Will the administration consider the forgiveness of the loan when deciding public charge issues in future applications for immigration benefits?
- Forgiveness of loan and the requirement that a petitioning company be able to sustain itself and its employees
- Is there a benefit to applying for the loan and not seeking forgiveness (e.g., lower interest rates, no personal guarantee requirement)?
Non USC or LPR small business owner should consult with their immigration and business attorneys in order to consider whether applying for a PPP to stay in business is in their best interest.
If you have questions about your immigration case,, it’s important to speak with an experienced immigration attorney to discuss your specific case and circumstances. Attorney Evelyn J. Pabon Figueroa is an Associate in the Orlando office of CPLS, P.A. She is a member of the firm’s Immigration Practice Group. Contact Attorney Evelyn today at email@example.com to discuss any immigration issues you may be experiencing.