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.

SBA and Treasury Release FAQs on Paycheck Protection Program Loans

On April 6, 2020, the Small Business Administration (SBA), in consultation with the U.S. Department of Treasury, provided brief answers to frequently asked questions (FAQs) on the Paycheck Protection Program (PPP) established under the Coronavirus Aid, Relief and Economic Security Act (CARES Act).

To read the full text of this Alert, which highlights the further clarifications provided by the FAQs for borrowers working their way through the PPP, please visit the firm website.

Mortgage and Other Real Property Relief Under the CARES Act

The Coronavirus Economic Stabilization Act (CESA, under Title IV of the CARES Act) puts in place a foreclosure moratorium for certain residential properties (including individual units of condominiums and cooperatives), and an eviction moratorium for tenants of certain “covered property” (predominantly multifamily housing units). The foreclosure moratorium applies to foreclosures of single family residential real property (designed for occupancy by one to four families) subject to federally backed mortgage loans (prohibiting loan servicers from initiating foreclosure actions). The eviction moratorium applies to lessor eviction actions based on nonpayment of rent or other fees and charges from single family and multifamily properties that (i) participate in certain federal housing voucher programs, (ii) have a loan that was made or guaranteed a federal program, or (iii) were purchased or securitized by Fannie Mae or Freddie Mac (collectively, “Covered Property”) (prohibiting lessors from intiating eviction actions). In addition to the imposition of the above noted moratoria, CESA has mandatory forbearance provisions that apply to loans on single and multifamily residential property with federally backed mortgages.

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

New Jersey Economic Development Authority Announces Application Launch Date for Loan Program for Small Businesses impacted by COVID-19

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Loan Program on Monday, April 13, 2020 at 9:00 a.m. A link to the program application will be posted on the State’s COVID-19 Business Information Hub. To provide business owners the opportunity to prepare to apply for the loan, a .pdf version of the application will become available on Monday, April 6, 2020.

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

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.

New Jersey: NJEDA Small Business Emergency Assistance GRANT Program Opens April 3

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Grant Program on Friday, April 3, 2020 at 9:00 am. If you are thinking of applying, a link to the grant program application will be posted on the State’s COVID-19 Business Information Hub. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

This Grant program is a $5M program that will provide grants up to $5,000 to small businesses in retail, arts entertainment, recreation, accommodation, food service, repair, maintenance, personal and laundry services.

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

Pennsylvania Offers Economic Relief Programs for Businesses and Nonprofits

In response to the current COVID-19 pandemic, federal, state and local governments are ushering in an array of programs and tax relief measures to help mitigate the adverse economic impact of COVID-19 on business and nonprofit entities.

To read the full text of this Duane Morris Alert, which identifies and provides an overview of available economic programs, tax relief measures and deadline extensions for applicable Pennsylvania and Philadelphia organizations affected by the COVID-19 pandemic and closures, 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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