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Maine small businesses with federal loans face hard decisions on what to do next – Bangor Daily News

Maine small businesses with federal loans face hard decisions on what to do next – Bangor Daily News

Katie Krakowka has been quoted in the Bangor Daily News discussing the challenges some businesses are facing even after they receive federal funding.

On its website, the SBA says the loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities. At least 75 percent of the forgiven amount must have been used for payroll. The employer must quickly rehire the same number of employees it had before the pandemic and maintain salary levels by June 30.

But Katie Krakowa, a lawyer who advises business clients at Murray Plumb & Murray in Portland, said the SBA still hasn’t provided guidance on what constitutes payroll under the program. Guidance was expected last week, but she said it may not come for another few weeks.

Some businesses are giving bonuses to increase payroll costs and loan amounts, though Krakowa was not sure if those costs would be forgiven. At the same time, she said the money can give businesses time to make changes that could ensure long-term survival.

“People are overwhelmed now by being in a tough position, having this large amount of money and being fixated on forgiveness,” Krakowa said.

The complete article can be read at bangordailynews.com.