News

• Law Brief: Elishama Rudolph and Rich Schoenstein Talk PPP Loan Forgiveness
  

  Corporate and Securities Associate and COVID-19 Practice Member Elishama (Eli) Rudolph joins Litigation Partner and host Rich Schoenstein to discuss the PPP loan program. In the latest episode, that follows up on an earlier episode launched in May, they further address the current status of the PPP program and provide updates on the program's loan forgiveness. 

• Law Brief Podcast: Members of our COVID-19-Team Discuss Stimulus Programs for Businesses under the CARES Act
  

  COVID-19 team members Eli Rudolph and Simon Malinowski join Litigation Partner and host Rich Schoenstein to discuss the Coronavirus Aid, Relief and Economic Security Act’s (CARES Act) Relief for Small Businesses. Our COVID-19 team guides clients through the process of navigating resources offered under the CARES Act. In the latest episode, they discuss the financial relief available under the CARES Act, including PPP and EIDL loans, the eligibility guidelines, the ongoing requirements for companies who receive them, frequently asked client questions and anticipated forgiveness guidance that is still awaited. Listen to the episode.

Events

• Elishama Rudolph to Present CLE on CARES Act Loans
  

  On June 9, 2020, COVID-19 Practice Member Elishama Rudolph will co-present the CLE “Practice Management During a Pandemic,” which will discuss the CARES Act Loans, PPP management and forgiveness. The CLE program is part of the Elder Law & Special Needs Section Virtual Summer Meeting Series, which is co-chaired by Trusts and Estates Associate Alexis Gruttadauria.

   

• SBA Issues Procedural Notice Regarding Changes of Ownership
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.
  On October 2, 2020, the SBA released a procedural notice (Notice) – available here – addressed to SBA employees and PPP lenders clarifying the required procedures for changes of ownership of an entity that has received PPP funds.

• Paycheck Protection Program Extended Through August 8, 2020
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

• Federal Reserve Bank of Boston Announces Main Street Lending Program Is Fully Operational
  

  The Federal Reserve Bank of Boston announced the Main Street Lending Program is “now fully operational, ready to purchase participations in eligible loans that are submitted to the program by registered lenders.”

• SBA Issues New Interim Final Rule for Paycheck Protection Program– Guidance Your Business Should be Aware Of
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

• Internal Revenue Service Announces Relief for Qualified Opportunity Zone Investors
  

  On June 4, 2020, the Internal Revenue Service issued Notice 2020-39, which provides temporary relief to qualified opportunity funds (QOFs) and their investors as a result of the COVID-19 pandemic.

• Federal Reserve Bank of Boston Modifies Main Street Lending Program
  

  The Federal Reserve Bank of Boston announced changes to the Main Street Lending Program (Program) to allow more small and medium-sized businesses to be able to participate in the Program. 

• Federal Reserve Advances Towards Launching Main Street Lending Program
  

  The Federal Reserve recently announced that the Federal Reserve Bank of Boston has set up the special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders under the Main Street Lending Program (Program). In addition, Program loan participation agreement, form borrower and lender certifications, and other required form agreements are now available on the Federal Reserve Bank of Boston’s Main Street Lending Program Forms and Agreements website. The Federal Reserve also updated its Frequently Asked Questions (FAQs), dated May 27, 2020.

• Amendment to CARES Act and PPP Loan Forgiveness
  

  On June 5, 2020, President Trump signed H.R. 7010 (the Bill), which the Senate had unanimously passed. The Bill amends several provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Paycheck Protection Program (PPP).

• Alternative Loan Options For Certain Small Businesses, Non-Profits and Landlords in New York State
  

  For certain small businesses, non-profits and landlords who did not receive a Paycheck Protection Program loan or an Economic Injury Disaster Loan from the Small Business Administration, New York State is making available loans under the New York Forward Loan Fund (NYFLF). The NYFLF is a new economic recovery loan program aimed at supporting New York State’s small businesses, non-profits and landlords as they reopen after the COVID-19 outbreak and New York State on PAUSE.

• Main Street Loans: How Much May a Company Borrow?
  

  Federal Reserve Chairman Jerome Powell announced on May 19, 2020, before a Senate Committee that the Main Street Lending Program (Program) is anticipated to be launched around the end of May. Prospective borrowers should be preparing for making loan applications with participating lenders when the Program commences.

• New York City Council Passes Suspension of Personal Guarantees for Certain Commercial Tenants
  

  On May 26, 2020, New York City Mayor Bill de Blasio signed the City Council’s bill No.1932-A (the Personal Liability Bill). The Personal Liability Bill adds a new section 22-1005 to the administrative code of the City of New York, suspending the enforcement of personal liability provisions for certain commercial tenants affected by the COVID-19 crisis.

• SBA Releases Additional PPP Loan Review Guidance
  

  On May 22, 2020, the Small Business Administration (SBA), in consultation with the U.S. Department of Treasury, published an interim final rule (the Review Guidance) to supplement previous Paycheck Protection Program (PPP) loan forgiveness guidance. The Review Guidance is intended to establish the standards by which the SBA will investigate whether a loan met program requirements and the circumstances under which it will be released from liability on a guarantee for such a loan.

• SBA Releases Additional PPP Loan Forgiveness Guidance
  

  On May 22, 2020, the Small Business Administration, in consultation with the U.S. Department of Treasury, published an interim final rule to supplement previous Paycheck Protection Program loan forgiveness guidance.

• Eligibility Requirements for Federal Reserve’s Main Street Lending Program
  

  Federal Reserve Chairman Jerome Powell announced on May 19, 2020, before a Senate Committee that the Main Street Lending Program (Program) is anticipated to be launched around the end of May. Prospective borrowers should be preparing for making loan applications with participating lenders when the Program commences.

• SBA Releases PPP Loan Forgiveness Application and Instructions
  

  On May 15, 2020, the Small Business Administration, in consultation with the U.S. Department of Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application (the Forgiveness Application) and detailed instructions for the Forgiveness Application. To apply for PPP loan forgiveness, the borrower must complete the Forgiveness Application and submit the completed application and required documentation to its lender.

• SBA Extends Good Faith Certification Safe Harbor Until May 18, 2020 and Loan Increases for Certain Partnerships
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.
  As the PPP went into immediate effect without the standard comment period, the SBA continues to issue additional guidance in the form of Frequently Asked Questions (FAQs) and responses as well as Interim Final Rules (IFRs). The most recently updated FAQs, current as of May 13, 2020, are available here and the most recently issued IFRs are available here. Importantly, the U.S. government will not challenge lender PPP actions that conform to the FAQs, and to IFRs and any subsequent rulemaking in effect at the time.

• SBA Issues Additional Guidance on Good Faith Certification
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

• New York Extends Moratorium on Evictions and Tolling of Statute of Limitations
  

  On May 7, 2020, New York State Governor Andrew Cuomo signed Executive Order No. 202.28 (the Executive Order), extending the existing moratorium on evictions and foreclosures for an additional 60 days. The Executive Order also extended time periods set forth in certain prior executive orders, including tolling all statutes of limitations until June 6, 2020.

• SBA Issued Additional FAQ on Paycheck Protection Program on May 6, 2020 – Guidance Your Business Should Know
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

  As the PPP went into immediate effect without the standard comment period, the SBA continues to issue additional guidance in the form of Frequently Asked Questions (FAQs) and responses. The most recently updated FAQs, current as of May 6, 2020, are available here. Importantly, the government will not challenge actions that borrowers and lenders take consistent with the guidance in effect at the time.

• SBA Issues Additional FAQ on Paycheck Protection Program
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

• Revisions Announced to Main Street Lending Program
  

  The U.S. Federal Reserve announced revisions to the Main Street Lending Program to facilitate lending to small and medium-sized businesses by eligible lenders. The U.S. Department of Treasury, using funds appropriated under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will invest $75 billion in a special purpose vehicle (SPV) established by the Board of Governors of the Federal Reserve, which, along with a loan commitment from the Federal Reserve to the SPV, will enable up to $600 billion in new financing for eligible small and mid-sized businesses.

• IRS Issues Notice on Deductibility of Expenses Paid with Forgiven PPP Money
  

  On April 30, 2020, the Internal Revenue Service (IRS) issued Notice 2020-32, which provides that no deduction is allowed for expenses paid with loan money forgiven under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

• U.S. Department of Treasury Issues Guidance on PPP Loan Audits
  

  On April 29, 2020, the U.S. Department of Treasury issued an updated FAQ. Notably, Q39 confirms Treasury Secretary Steven Mnuchin’s public statement that the SBA will audit all Paycheck Protection Program (PPP) loans in excess of $2 million upon submission of a loan forgiveness application.

• The Paycheck Protection Program – Additional Guidance
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.
  As the PPP went into immediate effect without the standard comment period, the SBA continues to issue additional guidance in the form of Frequently Asked Questions (FAQs) and responses. Importantly, the government will not change actions that borrowers and lenders take consistent with the guidance in effect at the time.

• The U.S. Department of Treasury Issues Updated Guidance on Borrower Certification
  

  On April 23, 2020, the U.S. Department of Treasury (Treasury) issued an updated FAQ (the Updated Guidance) with one additional Q and A (Q31) that addresses the required certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The Updated Guidance emphasizes that a borrower must assess its economic need for a PPP loan at the time of its application in addition to reviewing applicable affiliation rules to determine eligibility.

• Federal Government Passes Act Providing Additional PPP and EIDL Funding – What Businesses Should Know
  

  The Paycheck Protection Program and Health Care Enhancement Act (the Enhancement Act) was passed on April 24, 2020, and provides $484 billion in additional funding. Critically, the Enhancement Act includes additional funding for the Paycheck Protection Program (PPP) and the Emergency Injury Disaster Loan program (EIDL), both of which had run out of funding.

• The Paycheck Protection Program – How to Obtain Forgiveness of Your Loan and Answers to Commonly Asked Questions
  

  Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), a newly created loan program intended to allow employers to continue to pay their employees and assist with certain other expenses.

• U.S. Federal Reserve Issues Guidance About Main Street New Loan Facility
  

  On April 9, 2020, the U.S. Federal Reserve announced the creation of the Main Street New Loan Facility (Facility), to facilitate lending to small and medium-sized businesses by eligible lenders. Under the Facility and the Main Street Expanded Loan Facility, a Federal Reserve Bank will commit to lend to a single common special purpose vehicle on a recourse basis.

• U.S. Department of Treasury Provides FAQ for Paycheck Protection Program
  

  On April 6, 2020, the U.S. Department of Treasury, in conjunction with the Small Business Administration (SBA), published guidance for the Paycheck Protection Program (PPP) as Frequently Asked Questions (FAQ). The FAQ provides guidance to borrowers and lenders as to the SBA’s interpretation of the CARES Act and the PPP Interim Final Rule published on April 2, 2020.

• Small Business Administration Provides Interim Final Rules for Paycheck Protection Program
  

  On April 2, 2020, the Small Business Administration (SBA) issued its Interim Final Rules (the Interim Rules) for the Paycheck Protection Program (PPP). The Interim Rules include examples to illustrate the methodologies used to calculate loan amounts. Additionally, the U.S. Treasury Department released an updated Application Form.

• U.S. Department of Treasury Issues Additional Guidance for Paycheck Protection Program
  

  Following the enactment of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), small businesses and their advisors have been anxiously awaiting additional guidance from the U.S. Treasury Department (Treasury) regarding the Paycheck Protection Program (PPP). --  On March 31, 2020, Treasury issued its guidance.