On July 1, 2020, the United States Congress passed an extension of the deadline for Paycheck Protection Program (PPP) loans made under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and Paycheck Protection Program Flexibility Act.
To read the full text of this Duane Morris Alert, please visit the firm website.
On June 24, 2020, the Treasury Department and Small Business Administration released an interim final rule updating eligibility criteria for Paycheck Protection Program (PPP) loans made under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and the Paycheck Protection Program Flexibility Act.
The June 24 interim final rule loosens the eligibility criteria that applied to owners of 20 percent or more of a PPP loan borrower’s equity, specifically concerning the criminal histories of such owners. In addition, the June 24 interim final rule confirms certain other eligibility criteria that will remain in place.
To read the full text of this Duane Morris Alert, please visit the firm website.
The Paycheck Protection Program Flexibility Act (PPP Flexibility Act), which changes some of the components of the Paycheck Protection Program (PPP) provided under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), was passed by the House of Representatives on May 28, 2020, and by the Senate on June 3, 2020. The PPP Flexibility Act is expected to be signed into law soon.
To read the full text of this Duane Morris Alert, please visit the firm website.
Paycheck Protection Program loan borrowers for application of the 500-employee limit provided under the Coronavirus Aid, Relief and Economic Security Act. The interim final rule provides a safe harbor for applications submitted prior to May 5, 2020, that did not include non-U.S. resident employees in the headcount determination, notwithstanding the prior guidance that was issued requiring that they be included.
To read the full text of this Duane Morris Alert, which discusses the interim final rule and its impact on businesses with foreign affiliates, please visit the firm website.
Like much of the transportation industry during the COVID-19 pandemic, America’s airports are experiencing significant losses in revenue. Airports Council International predicts that the U.S. airport industry will lose $23 billion as a result of COVID-19.
Title XII of Division B of the Coronavirus Aid, Relief, and Economic Security, or CARES, Act addresses these significant economic disruptions by providing approximately $10 billion to U.S. airports “to prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency.” The funding is somewhat discretionary, with a requirement that it be used for any purpose for which airport revenues may lawfully be used, so long as the use of funds is related to the airport.
To read the full text of this article by Duane Morris attorneys Alan Kessler, Jamie Brown and Rachel Kubasek, which was originally published by Law360, please visit the firm website.
The Federal Reserve Board issued initial guidance regarding its Main Street Lending Program on April 9, 2020, as authorized under the Coronavirus Economic Stabilization Act (Title IV of the CARES Act). This original guidance established the broad brush parameters of the program, but was short on details, raising concerns among both borrowers and lenders about its eventual implementation. On April 30, in response to a flood of public comments, the Federal Reserve released updated guidance, containing substantially greater operational details. The new guidance both modified and supplemented the two previously announced facilities―the Main Street New Loan Facility and the Main Street Expanded Loan Facility―and added a third facility, the Main Street Priority Loan Facility, expanding the overall scope of the program.
To read the full text of this Alert, please visit the firm website.
The Paycheck Protection Program and Health Care Enhancement Act (CARES Act 2.0) was signed into law on April 24, 2020, providing additional funding for the Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loans program. Subsequent guidance issued since the passage of CARES Act 2.0, as well as heightened public scrutiny of the PPP loan program, has resulted in further restrictions regarding the types of businesses that are eligible for PPP loans and further scrutiny regarding need for the loans. This has prompted reconsideration on the part of applicants regarding whether to return PPP loan proceeds. In addition, guidance continues to be issued to clarify need certifications, forgiveness and other PPP-related matters.
To read the full text of this Duane Morris Alert, which provides an update on the newest guidance, please visit the firm website.
As part of a suite of COVID-19 relief programs, the CARES Act appropriated $100 billion into a Provider Relief Fund meant for “hospitals and other healthcare providers on the front lines of the coronavirus response.” Medicare providers and facilities should have seen funds appear in their accounts between April 10 and April 17 when the first $30 billion of the $50 billion general allocation was distributed. Further, eligible recipients should begin to see funds from the remaining $20 billion of the general allocation as well as additional targeted allocations for hospitals in hot zones or rural areas.
To read the full text of this post by Duane Morris attorney Ryan Wesley Brown, please visit the Duane Morris Health Law Blog.
With the enactment of the Paycheck Protection Program and Health Care Enhancement Act (CARES Act 2.0), agricultural businesses and farmers previously excluded from the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program are now eligible for EIDL grants and loans. Additionally, the U.S. Department of Agriculture’s newly announced Coronavirus Food Assistance Program (CFAP) offers aid to farms and certain livestock producers through direct payments and bulk purchases.
To read the full text of this Alert, which provides a brief overview of these new aid programs for the agricultural industry, please visit the firm website.
On April 24, 2020, the casino industry received some much-needed good news from the Small Business Administration (SBA). Specifically, the SBA issued revised regulatory guidelines for the CARES Act’s Paycheck Protection Program (PPP) that now make PPP loans available to small gaming businesses previously precluded from the program because of restrictions on gambling-based revenue, but otherwise met the eligibility requirements.
To read the full text of this Duane Morris Alert, please visit the firm website.
