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.

 

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.

SBA Updates Interim Regulatory Guidelines to Greatly Expand Accessibility of Paycheck Protection Program Loans to Gaming Businesses

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.

Economic Programs Available to Illinois Workers and Businesses in the COVID-19 Crisis

In response to the COVID-19 pandemic, federal, state and local governments, through both legislative and executive means, have enacted or ordered a broad array of financial measures to mitigate the adverse economic effects experienced by businesses and nonprofit entities.

To read the full text of this Duane Morris Alert, which will identify and explain the economic programs established by both the federal government, the state of Illinois and the city of Chicago to help ease the financial effects of COVID-19, 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.

Economic Programs Available to Texas Workers and Businesses in the COVID-19 Crisis

In response to the COVID-19 pandemic, federal, state and local governments, through both legislative and executive means, have enacted or ordered a broad array of financial measures to mitigate the adverse economic effects experienced by businesses and nonprofit entities.

To read the full text of this Duane Morris Alert, which will identify and explain the economic programs established by both the federal government and state of Texas to help ease the financial effects of COVID-19, 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.

Small Business Administration Updates Interim Regulatory Guidelines to Help Certain Gaming Companies

On April 14, 2020, the Small Business Administration (SBA) issued revised interim regulatory guidelines for the Paycheck Protection Program (PPP). The revisions provide, in relevant part, that certain companies which derive revenues from legal gaming activities are eligible for PPP loans and are not automatically ineligible as previously thought pursuant to the interim regulatory guidelines released on April 2, 2020, and discussed in our previous Alert.

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