Tag Archives: loans

Paycheck Protection Flexibility Act passed by U.S. House of Representatives

The new Paycheck Protection Flexibility Act (H.R. 7010), which focuses on small businesses and restaurants in particular, has passed the U.S. House of Representatives.

The bipartisan Paycheck Protection Flexibility Act,was introduced last week by Reps. Dean Phillips, D-Minnesota and Chip Roy, R-Texas, and is designed to extend the 8-week period under which loan recipients could spend PPP money to 24 weeks while helping correct other provisions that would provide more flexibility to small businesses in the hospitality realm.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

SBA Releases Paycheck Protection Program Loan Forgiveness Application

On May 15, 2020, the Treasury Department and Small Business Administration released the Loan Forgiveness Application for the Paycheck Protection Program. Borrowers are required to complete the application and submit it to their lenders in order to apply for loan forgiveness. This Alert discusses the Loan Forgiveness Application, as well as some clarifications regarding the rules for loan forgiveness contained within the application.

To read the full text of this Duane Morris Alert, please visit the firm website.

Small Business Administration Releases Interim Final Rule on Counting Foreign Affiliate Employees under the Paycheck Protection Program

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.

 

Avoiding Improper Use Of CARES Act Airport Grants

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.

SBA Extends Safe Harbor Date for Repayment of Paycheck Protection Program Loans and Clarifies Rules for Counting Employees of Foreign and U.S. Affiliates

On May 5, 2020, the Treasury Department released an updated FAQ sheet that extends the safe harbor date to May 14, 2020, for any Paycheck Protection Program (PPP) loan borrower that determines it does not meet the need certification and repays the loan in full. The same day, the Small Business Administration issued an interim final rule addressing determination of employee headcount and nondiscrimination laws applicable to PPP loan recipients.

To read the full text of this Duane Morris Alert, please visit the firm website.

 

New COVID-19 Relief Opportunities for the Agricultural Industry

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.

Paycheck Protection Program Loan Forgiveness Update

Now that the Small Business Administration (SBA) has funded the first wave of Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), borrowers need to be mindful of the PPP use-of-proceeds requirements for forgiveness and the penalties for the unauthorized use of proceeds.

To read the full text of this Duane Morris Alert, please visit the firm website.

SBA’s Interim Final Rule Clarifies Paycheck Protection Program Loan Eligibility Requirements

On April 14, 2020, the Small Business Administration (SBA) released an additional interim final rule applicable to Paycheck Protection Program (PPP) loans. The interim final rule covers eligibility criteria for self-employed individuals and partnerships, as well as clarifications for businesses affiliated with a PPP lender and businesses operating in the legal gaming industry. However, many of the concepts addressed in the interim final rule are also applicable to all loan applicants and the use of PPP loans in general. Note: Although the PPP funds have run out, Congress is discussing adding more money.

To read the full text of this Duane Morris Alert, please visit the firm website.

Department of Treasury Issues Guidance on Air Carrier Industry Assistance from CARES Act

On March 30, 2020, the U.S. Department of the Treasury issued guidance to air carriers for $32 billion in emergency relief grant aid for payroll outlined in the Coronavirus Aid, Relief and Economic Security Act (CARES Act), signed into law by the president on March 27, 2020. An additional $46 billion is authorized for loans from the Treasury under Section 4003(b) of the CARES Act. These grants and loans are dedicated to the airline industry.

To read the full text of this Duane Morris Alert, please visit the firm website.

Loans for Businesses Not Otherwise Receiving Relief Under the CARES Act

Businesses have principally focused on relief available under the Paycheck Protection Program and Economic Injury Disaster Loan provisions of the CARES Act. To the extent businesses qualify, these programs provide the most immediate and beneficial relief available under the Act. Further, the federal government has initially paid the most attention to these programs and how to bring them quickly online. For businesses that do not qualify for these programs, alternative relief may be available under other provisions of the Act.

To read the full text of this Duane Morris Alert, please visit the firm website.