How to Maximize Paycheck Protection Loan Forgiveness

Receiving Paycheck Protection Program (PPP) loan proceeds? If so, we hope it provides much needed cash during these uncertain times. Now what?

In this Alert, we summarize the loan forgiveness rules and provide steps you should consider taking over the eight-week period from the point you received the PPP proceeds in order to ensure maximum forgiveness of your loan.

To read the full text, please visit the firm website.

Federal Reserve Updates Main Street Lending Program Guidance

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.

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.


Small Business Administration Opens Economic Injury Disaster Loan Applications to Agricultural Businesses

On May 4, 2020, the Small Business Administration (SBA) resumed accepting Economic Injury Disaster Loan (EIDL) applications from eligible “agricultural enterprises” with 500 or fewer employees on a limited basis in order to provide relief to U.S. agricultural businesses. This updates our prior Alert.

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

CARES Act 2.0 Update on Hot Topics – Need Certifications, Forgiveness, Audits, Tax Deductions, Seasonal Business Loan Applications and Nonprofit Hospital Loan Eligibility

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.

$324 Million Dollars Awarded to 31 Pennsylvania Hospitals Under the HELP Program

Pennsylvania Governor Tom Wolf announced that nearly $324 million in funding has been awarded to 31 hospitals across the Commonwealth through the “Hospital Emergency Loan Program,” or HELP, which provides short-term financial relief as hospitals combat the surge of COVID-19 cases in their area.

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

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.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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