Banking & Finance Law Report

Paycheck Protection Program closes; new FAQs on loan forgiveness released

The Paycheck Protection Program (PPP) is now closed to new applicants. While talks on extending or changing the program have stalled on Capitol Hill, the Small Business Administration (SBA) has issued 23 more frequently asked questions specifically related to loan forgiveness. These FAQs are contained in a separate list from the previously released FAQs last updated on June 25, 2020 that focused on PPP loan eligibility and similar questions. My colleagues Jack Beeler, Jack Meadows and Cat Rice explain in this Porter Wright Law Alert.

 

Updated guidance for lenders on the Paycheck Protection Program loan forgiveness process

Although the federal government’s Paycheck Protection Program (PPP) is still open to applicants, borrowers who received PPP loans earlier this spring are getting ready to request that their loans be forgiven, in whole or in part. Lenders are preparing for the influx of a new round of “paperwork.” However, many questions about the program remain unanswered.

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Force majeure is the clause du jour in commercial leasing during the pandemic

“Force majeure” clauses are enjoying their day in the sun this year. Historically a boilerplate contract provision that excused performance in the event of some “act of God,” “war or insurrection,” or other unforeseen calamity likely never to occur, force majeure clauses were for years more frequently invoked by contracts professors and bar examiners than in the real world. COVID-19 changed that. Now, as businesses across the economic spectrum grapple with unprecedented supply-chain disruptions, employee unavailability, mandatory quarantines, government shutdown orders, and other impacts of the outbreak, force majeure has become the contract clause du jour. My colleagues Jared Klaus and Matt Moberg explain in this Porter Wright Law Alert.

Wage withholding in a remote working environment

Employers generally must withhold income taxes on behalf of employees based on where the employee works. Typically this determination is simplified by the location of the employer’s offices. The COVID-19 pandemic and corresponding stay-at-home orders have altered the working situations for most Americans. Employers must now consider the impact of employees working remotely and confirm that income tax withholding is properly executed given these unprecedented circumstances.

My colleague Gary Schulte explains in this Employer Law Report blog.

 

SBA issues two more borrower-friendly PPP forgiveness applications

The Small Business Administration (SBA) has issued two new borrower-friendly Paycheck Protection Program (PPP) forgiveness applications: the EZ Application and a revised Forgiveness Application. The changes come in response to the recent passage of the Paycheck Protection Program Flexibility Act as well as pressure to simplify the forgiveness process for borrowers. My colleagues Jack Beeler, Jack Meadows and Cat Rice explain the two new options and additional changes to the forgiveness program in this Porter Wright Law Alert.

 

Drop your pencils: The PPP Flexibility Act is here

Paycheck Protection Program (PPP) borrowers across the nation have struggled to meet the Small Business Administration’s (SBA) guidelines, with many resorting to new and creative payroll expenditures to meet spending minimums and qualify for full forgiveness of the loan. On June 3, 2020, the U.S. Senate passed House Bill 7010, the “Paycheck Protection Program Flexibility Act of 2020”, which was promptly signed by the president the following day.  My colleague Cat Rice explains the PPP Flexbility Act in this Porter Wright Law Alert.

UPDATE: Main Street Lending Program

Earlier this week, the Federal Reserve Board provided another update to the terms of the Main Street Lending Program that is intended to provide financing opportunities to small and medium–sized businesses. My Treasury Sec. Steve Mnuchin initially announced the details of the program on April 9, 2020. My colleagues Jack Beeler and Jack Meadows explain the details in this Porter Wright Law Alert.

 

 

Main Street Lending Program terms updated

The U.S. Treasury Department’s Main Street Lending Program is expected to be up and running within days.  The program is intended to provide financing opportunities to small and medium–sized businesses. U.S. Treasury Secretary Steve Mnuchin announced details on the program on April 9, 2020 and updated the terms recently with a second set of FAQs. My colleagues Jack Beeler and Jack Meadows explain in this Porter Wright Law Alert.

Antitrust concerns, price gouging, hoarding and protecting your business during the COVID-19 pandemic

We’ve seen some incredible collaborations and innovations during the COVID-19 pandemic. We have also seen price volatility during these uncertain times.  While these may not be top of mind for some, antitrust law and consumer protection law still apply and ignoring them could be costly for businesses down the road.  Porter Wright’s Jay Levine discussed these topics with partner Allen Carter in a three-part Antitrust Law Source podcast series focused on antitrust law and price gouging.

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