small business – Page 2 – Coronavirus (COVID-19)

July 24, 2020September 1, 2020 by Duane Morris

New Jersey Governor Murphy Announces Small Business Tenant Relief Program

On July 23, 2020, New Jersey Governor Murphy announced a new relief program for small businesses impacted by the COVID-19 pandemic. The Small Business Lease – Emergency Assistance Grant Program (SBL-EAGP) will allow businesses in 64 eligible municipalities to apply for grants of up to $10,000 for lease costs. The program will assist small business owners impacted by the COVID-19 pandemic, which also assists landlords, many of whom are also small businesses.

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

June 29, 2020August 31, 2020 by Duane Morris

Small Business Administration Releases Revised Eligibility Rules for Paycheck Protection Program

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.

June 16, 2020September 3, 2020 by Duane Morris

COVID-19, Business Interruption Insurance and Direct Physical Damage under New York Law

To date, approximately 150 business-interruption insurance coverage lawsuits have been filed in federal courts arising from COVID-19 and related government-ordered restrictions. In what appears to be the first substantive ruling on the merits in these cases, the Southern District of New York recently ruled against an insured who could not meet its burden to show a likelihood of success in establishing “property damage” due to the novel coronavirus to support its claim for injunctive relief. Judge Caproni expressed sympathy “for every small business that is having difficulties during this period of time,” but concluded that “New York law is clear” in requiring actual property damage to trigger business interruption coverage. Because the insured’s coverage theory rested on a government shutdown in the absence of any property damage, the Court denied its preliminary injunction motion, reasoning “this is just not what’s covered under these insurance policies.”

To read the full text of this post by Duane Morris attorneys Damon Vocke and David T. McTaggart, please visit the Duane Morris Insurance Law Blog.

June 15, 2020August 31, 2020 by Duane Morris

Small Business Administration Releases Rules Following Paycheck Protection Program Flexibility Act

On June 11, 2020, the Treasury Department and Small Business Administration (SBA) released a new interim final rule, which revises the earlier interim final rule released on April 2, 2020, and incorporates revisions to the Paycheck Protection Program (PPP) under the Paycheck Protection Program Flexibility Act signed into law on June 5, 2020.

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

June 11, 2020August 31, 2020 by Duane Morris

Federal Reserve Takes Significant Steps to Expand the Main Street Lending Program

On June 8, 2020, the Federal Reserve made significant additional changes to the terms of the Main Street Lending Program, aimed at making the program more attractive to small- and mid-sized businesses and to lenders. Changes include decreased minimum loan amounts, increased maximum loan sizes, extended loan terms and deferred principal repayments, among others.

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

May 29, 2020September 1, 2020 by Duane Morris

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.

May 26, 2020August 31, 2020 by Duane Morris

SBA Releases New Interim Final Rule on Review Procedures and Borrower and Lender Responsibilities for Paycheck Protection Program Loans

On May 22, 2020, the Treasury Department and Small Business Administration (SBA) released a new interim final rule on the SBA’s process for reviewing Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The May 22 interim final rule sets forth procedures relevant to both PPP loan borrowers and lenders in the context of review and audits of PPP loans.

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

May 19, 2020August 31, 2020 by Duane Morris

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.

May 19, 2020August 31, 2020 by Duane Morris

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.

May 13, 2020August 31, 2020 by Duane Morris

SBA Further Clarifies Economic Necessity Certification and Audit Procedures for Paycheck Protection Program Loans

On May 13, 2020, the Treasury Department and Small Business Administration (SBA) released Question 46 of the FAQ sheet, which addresses how the SBA will review the need certification required for Paycheck Protection Program (PPP) loans.

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