By Joe Bailey, Teri A. Lindquist, Wendy L. Moore, Andrew (Andy) Smetana and Sean M. Apfelbaum
After putting much emphasis on eligibility requirements for PPP loans, the SBA has now turned its attention to the requirements for loan forgiveness. On Friday night, the SBA released a PPP loan forgiveness application. The application
By Kevin Feldis, David Fletcher, and Markus Funk
A new $2 million SBA safe harbor for PPP loans appears to create a wide umbrella that substantially reduces the risk that adverse consequences will rain down and soak companies with loans in this category. Perkins Coie attorneys examine the May 13 guidance and say
Alan Howard and Ed Baum discuss the viability of conducting virtual mediation sessions during the COVID-19 pandemic and beyond. The series includes conversations with neutrals and litigators for their take.
A Neutral’s Take – A Conversation with David Geronemus of JAMS in New York City
Speakers talk with mediator David Geronemus, of JAMS in New
The SBA and Treasury Department issued a new FAQ #46 this morning (May 13) that should give clarity and comfort to many PPP borrowers. First, Borrowers with PPP loans of less than $2 million will be deemed to have made the necessity certification in good faith. The $2 million amount includes the applicable company AND all of its affiliates as determined by the SBA’s affiliation rules. For PPP loans in excess of $2 million (including individual companies with a loan of less than $2 million if its affiliated group has PPP loans in excess of $2 million), the FAQ also provides helpful information. The FAQ provides that if the SBA determines that a borrower with a loan of greater than $2 million lacked an adequate basis for the necessity certification, the SBA will seek repayment of the outstanding PPP loan balance and, if the borrower repays the loan after receiving notification from the SBA, the SBA will not refer or pursue enforcement actions with respect to the certification concerning necessity of the loan request.
Continue Reading SBA Announces New “Necessity” Safe Harbor for Paycheck Protection Program Loans
California has now entered Stage 2 of its Resilience Roadmap. The state is providing guidance to help workplaces reopen safely and has information specific to various industries. Businesses should review the information related to their industry as it “provides guidelines to create a safer environment for workers.” The state guidance also provides as follows:
“Before
By Jon Daryanani, Javier Garcia, Jill Ripke, and Lindsay Holloman
Los Angeles County announced a Roadmap to Recovery allowing certain non-essential businesses to reopen for curbside pickup with adherence to distancing and infection control protocols as of May 8, 2020. Los Angeles County will also allow certain outdoor parks and recreational facilities
By Joe Bailey, Teri Lindquist and Andy Smetana
On May 5, 2020, the Small Business Administration (SBA) issued a new FAQ[1] announcing that it will be extending the deadline for borrowers under the Paycheck Protection Program (PPP) to repay their loans and be deemed to have made the “necessity” certification in good faith from May 7 to May 14. The extension is to be implemented through a revision to the fourth Interim Final Rule that had previously set a May 7 deadline.
Continue Reading SBA Announces Plans to Extend Deadline for Borrowers to Return PPP Loans Under “Necessity” Safe Harbor
By Teri Lindquist and Andy Smetana
On April 30, 2020, the Small Business Administration (SBA) and Department of Treasury released their seventh Interim Final Rule regarding loans under the Paycheck Protection Program (PPP). This Interim Final Rule is immediately effective, and a copy can be found here. This latest guidance from the SBA creates a $20 million cap on eligibility for borrowers that are part of a corporate group and would require them to withdraw or request cancellation of any loan applications that are in process that would cause the group’s aggregate amount of PPP loans to exceed $20 million. This does not impact PPP loans that were fully disbursed as of April 30.
Continue Reading Interim Final Rule Reduces PPP Loan Eligibility for Members of Corporate Groups
By Kevin Feldis, Markus Funk and David Fletcher
Companies seeking PPP loans must concurrently navigate the potential minefield of public scrutiny and government enforcement, requiring a heightened level of planning and procedures.
An adequate compliance program is a must to avoid ramped-up enforcement efforts and to minimize legal and reputational risks.