Insights
Paycheck Protection Program Updates
Recent Guidance for Small Businesses Applying for PPP Loan
As Congress prepares to add an additional $320 billion to the Paycheck Protection Program, which was created under the CARES Act on March 27, 2020, the Small Business Administration, in consultation with the Department of Treasury, has updated its guidance in an effort to narrow the scope of those eligible to receive PPP loans. The CARES Act provides that the borrower of a PPP loan must certify “that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.” The newly issued guidance provides the following:
In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.
Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.
If you have any questions or need assistance in connection with your PPP loan or application, please contact one of our business and corporate attorneys at 941.748.0100. To reach Jenifer Schembri, email jschembri@blalockwalters.com.
Certain Permits and Development Orders May be Extended Due to Florida’s State of Emergency for COVID-19
On March 9, 2020, Florida Governor Ron DeSantis issued Executive Order 20-52 declaring a state of Emergency in Florida for the Novel Coronavirus Disease 2019 (COVID-19).
Employee Rights: DOL Releases Required Families First Coronavirus Response Act Notice to be Posted in Workplaces
The Department of Labor released the notice required by the Families First Coronavirus Response Act (FFCRA) to be posted in the workplace beginning April 1, 2020.
Proposed Stimulus Package…Big Help is on the Way
Lawmakers have spent the past several weeks negotiating a package which will boost our economy and, while most of us were sleeping last night, Senate leaders announced a bipartisan deal to the tune of $2.2 Trillion.
Frequently Asked Questions – Families First Coronavirus Response Act
On March 18, 2020, Congress passed, and President Trump signed, the Families First Coronavirus Response Act (“FFCRA”).
Emergency Bridge Loan for Small Businesses Impacted by COVID-19
While the Senate is in the midst of debating a stimulus plan proposed by the Trump Administration, Governor Desantis has activated the Florida Small Business Emergency Bridge Loan Program (the “Program”) to provide support to small businesses that experience economic injury from COVID-19.
Coronavirus Tax Relief
The U.S. Department of the Treasury has recently issued a series of Notices which grants automatic relief to taxpayers. Due to COVID-19, the traditional April 15 deadline for filing and paying federal taxes has now been extended to July 15, 2020.
Prompt Assistance for Business Under the Families First Coronavirus Response Act
The IRS has announced that guidance will be released next week providing that eligible employers who pay employees under the new requirements for paid sick time or child care leave under the new Law will be entitled to retain payroll taxes due to the IRS in an amount equal to the amount of the qualifying paid sick time and child care leave that they paid, rather than deposit those amounts with the IRS.
Estate Planning During Coronavirus
Thanks to technology, our firm is fully operational during the COVID-19 pandemic and has already assisted clients with the “new temporary normal” of sheltering in place.
New Law Requires Employers to Provide Paid Sick Leave to Employees Impacted by Coronavirus
Yesterday evening, President Trump signed an emergency bill, the Families First Coronavirus Response Act, expanding the family and medical leave provisions under federal law. The act provides for Emergency Leave related to caring for children as well as additional...
Centers for Medicare and Medicaid Services Broadens Telehealth Services Amid COVID-19
In response to COVID-19, the Centers for Medicare and Medicaid Services (CMS) has significantly broadened access to Medicare reimbursable telehealth services.