Why Mike Morse Returned the $2 Million PPP Loan
Mike Morse Law Firm announced this week that we have chosen to return the $2 million-dollar Paycheck Protection Program loan that we received through the CARES Act. This decision did not come easily, but we knew it was the right thing to do because we saw a need in our community. As a business owner who started his company from nothing, Mike understands the needs of small business owners more than anyone. We have received many inquiries regarding the details of our decision. Here are answers to the most common questions:
Why did the Mike Morse Law Firm apply for the loan in the first place?
Throughout the COVID-19 pandemic, we have all experienced a great deal of uncertainty. Things have been changing daily regarding the predictions of what the future will look like. Just a few weeks ago, the Mike Morse Law Firm was in a much different position than we are today. Mike summed up his fears at the time in a recent Open Mike podcast, saying “Heck, we’re a law firm, and the courts are closed.” Our main source of revenue comes from auto, truck, and motorcycle accidents, yet fewer people were on the roads. Every financial advisor at the time was telling us to apply before the money ran out, so we did. We needed to make sure we had all the help we could get to continue to pay our employees and keep the lights on. It was a surprise and blessing that we were in the position to return the money.
How did you decide you didn’t need the money from the loan?
Luckily, we have a great team at the Mike Morse Law Firm. Because we are a tech-driven firm, we already had a setup in place for people to work from home. Our employees have maintained their relentless focus on winning even in these circumstances and have continued to put clients first in order
to settle cases for as much as possible. The phones have continued to ring, and our expert attorneys are answering the call to action. We know that there will be a future impact to our revenue. But for now, we want to do our part for businesses that are not in the same position. Mike recently announced that he would waive his 2020 salary in order to put his employees first and he has once again demonstrated his commitment to extending this to the community as well. We want to be part of the solution rather than the problem.
Why didn’t you give the money directly to small businesses instead of returning the money to the government?
Because the loan was forgivable only if it was used for payroll and rent, the $2 million wasn’t ours to give away. Our intention is that the money will go to a small business that needs it more than we do. Although the system is flawed, we hope our contribution will be a step in the right direction and that other businesses in a similar position will follow suit.
Why did you decide to publicize your decision to return the loan?
By publicizing our decision to return the money, we hope to encourage other similarly positioned businesses in the community to do the same thing. During these times, we strive to be as transparent as possible with our business practices. We keep our employees and clients up to date, but we also feel a connection to the community. Mike has always believed that businesses should make a profit, but they also have a responsibility to do good for the community. Oftentimes doing the right thing means putting
people before profit. Every employee at the Mike Morse Law Firm knows our mission statement “We Help Clients Live Really Well” and that means winning big, but it also means treating people with dignity and respect. Clients only come to us when they have experienced a terrible situation. Whether it’s an auto accident, SSD claim denial, dog bite, or another legal issue, our mission is to win the most money for them and help them by providing personal support. This same mindset translates to our community engagement. In these trying times, our community needs help to “Live Really Well” and we want to give them as much help as possible.