News & Analysis as of

Borrowers Good Faith

Walkers

Transposition of Credit Servicers Directive in Ireland – Overview

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On 29 December 2023, the Minister for Finance signed the European Union (Credit Servicers and Credit Purchasers) Regulations 2023 (the "Regulations") into law, thereby transposing the Directive on credit servicers and credit...more

Buchalter

PPP Lender Liability, Enforcement, & Fintech Challenges

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The Paycheck Protection Program (“PPP”) emerged as a lifeline for small businesses grappling with the unprecedented challenges of the COVID-19 pandemic. Lenders navigated a landscape of regulations that Congress quickly...more

Bowditch & Dewey

Five Things to Know About PPP Loan Audits

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The Paycheck Protection Program was one of the more innovative and written-about of the CARES Act’s fiscal stimulus packages. The U.S. Treasury and Small Business Administration (SBA) leveraged the private banking sector to...more

McGlinchey Stafford

Are My Claims Subject To Binding Arbitration?

McGlinchey Stafford on

Loss Mitigation Review Under RESPA Hurst v. Caliber Home Loans, Inc., N.D.Ohio No. 5:19-cv-00315, 2021 U.S. Dist. LEXIS 51849 (Mar. 19, 2021) In this matter, the Northern District of Ohio held that a loan servicer did...more

A&O Shearman

No Good Faith Or Reasonable Care Obligation Re Mortgage: You Can’t Have Morley

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Following a borrower default, when a bank was considering whether to enforce its security, a statutory implied term of reasonable care in a loan was of no consequence and it was not right to imply the term into a mortgage...more

Harris Beach PLLC

SBA Issues Loan Necessity Questionnaires to PPP Recipients; Signals Next Step in Loan Compliance Investigations

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The U.S. Small Business Administration (SBA) has begun to issue loan necessity questionnaires to Payroll Protection Program (PPP) borrowers, adding clarity to the good faith certification they required with initial...more

Burr & Forman

SBA Requires Borrowers Who Received PPP Loans of $2 Million or More to Submit “Pre-Audit Review” Information

Burr & Forman on

On October 31, 2020, the SBA released new forms and related instructions requiring borrowers with PPP loans of $2 million or more to provide additional information related to their PPP loans. Titled “Loan Necessity...more

Parker Poe Adams & Bernstein LLP

SBA Reveals Questionnaires Aimed at Auditing Necessity of Large Paycheck Protection Program Loans

In a series of FAQs issued last spring, the Small Business Administration (SBA) made clear that it would review the certification made by Paycheck Protection Program (PPP) borrowers of $2 million or more that “[c]urrent...more

Hahn Loeser & Parks LLP

SBA Releases Loan Necessity Questionnaires For PPP Loans In Excess Of $2 Million

The U.S. Small Business Administration (“SBA”) has released two Loan Necessity Questionnaires – one for for-profit businesses, the other for nonprofits – for recipients of Paycheck Protection Program (“PPP”) loans of $2...more

McDermott Will & Emery

PPP Update: SBA Issues Loan Necessity Questionnaires with 10-Day Turnaround

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The Small Business Administration (SBA) has released two loan necessity questionnaire forms (Form 3509 for for-profit borrowers and Form 3510 for nonprofits) for lenders to transmit to certain Paycheck Protection Program...more

Pillsbury Winthrop Shaw Pittman LLP

New SBA Questionnaires Ask Borrowers to Justify PPP Loan Necessity

The Small Business Administration’s questionnaires request information related not only to the economic condition of the borrower at the time it received the PPP loan, but also about its economic experience after receiving...more

Schwabe, Williamson & Wyatt PC

A Guide to the SBA PPP Loan Forgiveness Review Process - Update #2

Borrowers applying for loan forgiveness under the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) should familiarize themselves with the SBA guidance regarding the loan forgiveness review process....more

Schwabe, Williamson & Wyatt PC

A Guide to the SBA PPP Loan Forgiveness Review Process - Update

Borrowers applying for loan forgiveness under the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) should familiarize themselves with the SBA guidance regarding the loan forgiveness review process....more

Schwabe, Williamson & Wyatt PC

A Guide to the SBA PPP Loan Forgiveness Review Process

Borrowers applying for loan forgiveness under the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) should familiarize themselves with the SBA guidance regarding the loan forgiveness review process....more

Schwabe, Williamson & Wyatt PC

CARES Act Questions for the Manufacturing, Distribution and Retail Industry - Update #2

Congress recently passed the economic stimulus package referred to as the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act1”) and the Paycheck Protection Program and Health Care Enhancement Act (“PPPHCE...more

Moritt Hock & Hamroff LLP

Payroll Protection Program Updates

1-Safe Harbor Deadline Pushed To May 18, 2020 - FAQ 47 extends the FAQ 43 Safe harbor deadline to May 18th. FAQ 43 permitted PPP borrowers to avoid a certification of eligibility penalty by returning borrowed funds on or...more

Spilman Thomas & Battle, PLLC

COVID-19 Update: New Critical Guidance on PPP Loan Forgiveness

On May 13, 2020, the Small Business Administration ("SBA") issued FAQ # 46 dealing with its plan to review certain PPP loans (in response to COVID-19) to determine if the “necessity” certification was made in good faith by...more

Hinshaw & Culbertson LLP

SBA Provides Additional Guidance on Review of Economic Uncertainty Certifications Made by PPP Loan Applicants

In the past few weeks, the U.S. Department of Treasury and Small Business Administration (SBA) have raised issues concerning the economic uncertainty certification made by both public and private companies in FAQs #31 and...more

Fisher Phillips

Businesses That Obtained PPP Loans Under $2M Will Not Be Audited (UPDATED)

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One long week after the U.S. Treasury announced that it was extending the Paycheck Protection Program Loan “safe harbor” deadline to May 14, the U.S. Treasury announced this morning that borrowers whose loan amount (combined...more

Bowditch & Dewey

New Guidance on the PPP Necessity Certification Provides Automatic Safe Harbor for Borrowers with Loan Amounts Under $2 Million

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Safe Harbor Deadline to Repay Loans of $2 Million or More Extended to May 18th - On May 13, 2020, the Treasury issued important and long-awaited FAQ guidance regarding the PPP applicant certification (referred to herein...more

Goodwin

Financial Services Weekly Roundup: SBA Provides Guidance On Borrower’s Good Faith Certification

Goodwin on

In This Issue. The Small Business Administration (SBA) provided guidance on a borrower’s good faith certification on the necessity of Paycheck Protection Program (PPP) loan requests, announcing a safe harbor regarding this...more

Foley & Lardner LLP

SBA Issued New Guidance Regarding Recipients’ Certifications of Necessity for PPP Loans

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On May 13, 2020, the Small Business Administration (SBA) issued new, important guidance (available here) regarding how the SBA will review a borrower’s required good-faith certification of necessity made in its loan...more

Holland & Hart LLP

SBA Guidance Clarifies PPP Certification Concerning Necessity of Loan

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Since its inception, borrowers of loans under the Paycheck Protection Program (PPP) have been troubled by the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the...more

UB Greensfelder LLP

The CARES Act Update – Safe Harbor Materially Revised

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UPDATED May 14, 2020 – On May 13, 2020, the U.S. Treasury Department announced an additional automatic extension of the Safe Harbor deadline from May 14, 2020 to May 18, 2020. May 13, 2020 – The rules and ground shifted...more

Chambliss, Bahner & Stophel, P.C.

Treasury Provides New Safe Harbor for Recipients of PPP Loans Less than $2 Million

On May 13, 2020, the Treasury Department issued much-needed guidance for borrowers still considering whether they should return loan funds received under the Paycheck Protection Program (PPP). In recent FAQs, the Department...more

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