On December 23, 2024, the United States Court of Appeals for the Fifth Circuit terminated the nationwide preliminary injunction originally issued by the United States District Court for the Eastern District of Texas,...more
12/27/2024
/ Appeals ,
Beneficial Owner ,
Business Entities ,
Corporate Transparency Act ,
Filing Deadlines ,
Filing Requirements ,
FinCEN ,
Preliminary Injunctions ,
Reporting Requirements ,
Stays ,
Time Extensions
On December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction barring enforcement of the Corporate Transparency Act (CTA)1 and its key implementing regulations...more
12/6/2024
/ Corporate Transparency Act ,
Department of Justice (DOJ) ,
Enforcement ,
Financial Crimes ,
FinCEN ,
First Amendment ,
Fourth Amendment ,
Popular ,
Preliminary Injunctions ,
Reporting Requirements ,
Texas ,
Unconstitutional Condition
The January 1, 2025, deadline imposed by the Corporate Transparency Act (CTA) for all “reporting companies” formed prior to 2024 to file their initial beneficial ownership reports with FinCEN is rapidly approaching. Given the...more
12/3/2024
/ Beneficial Owner ,
Compliance ,
Corporate Transparency Act ,
Deadlines ,
Documentation ,
Due Diligence ,
Financial Institutions ,
FinCEN ,
Know Your Customers ,
Penalties ,
Policies and Procedures ,
Reporting Requirements
On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued its long-anticipated Open Banking Rule (the Open Banking Rule) under Section 1033 of the Dodd-Frank Act, fundamentally reshaping the data-sharing...more
10/29/2024
/ Banking Sector ,
Compliance ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
Data Collection ,
Disclosure Requirements ,
Dodd-Frank ,
Federal Trade Commission (FTC) ,
Final Rules ,
Financial Services Industry ,
Gramm-Leach-Blilely Act ,
Penalties ,
Third-Party
Most smaller businesses newly formed or registered to do business in the United States will soon be required to file their initial beneficial ownership report with the federal Financial Crimes Enforcement Network (FinCEN),...more
7/18/2023
/ Beneficial Owner ,
Budgets ,
Compensation ,
Corporate Transparency Act ,
Debt ,
Dissolution ,
Equity ,
FinCEN ,
Incentives ,
Investment ,
Jurisdiction ,
Membership Interest ,
Mergers ,
Reorganizations ,
Reporting Requirements ,
Stocks ,
Trustees
In what is now the second largest bank failure in United States history, the California Department of Financial Protection and Innovation closed embattled San Francisco-based First Republic Bank shortly after midnight...more
5/2/2023
/ Acquisitions ,
Banking Sector ,
Department of Financial Protection and Innovation (DFPI) ,
Fair Housing Act (FHA) ,
Fannie Mae ,
FDIC ,
Freddie Mac ,
Interest Rates ,
JPMorgan Chase ,
Mortgages ,
Shareholders
Today, First Citizens Bank & Trust Company (First Citizens Bank) is taking over the business of the tech-focused Silicon Valley Bank (SVB) which was closed by regulators approximately two weeks ago on March 10. The...more
The Federal Deposit Insurance Corporation (“FDIC”) is the federal agency charged with providing deposit insurance for insured financial institutions in the United States. Specifically, FDIC insurance covers certain deposit...more
No business is immune from the possibility that things can go wrong—horribly wrong. On Friday, March 10, 2023, Silicon Valley Bank (SVB), the go-to bank for US tech startups, was shut down and taken over by federal regulators...more
3/13/2023
/ Banking Sector ,
Banks ,
Deposit Accounts ,
Deposit Insurance ,
Depository Institutions ,
FDIC ,
Federal Reserve ,
Financial Crisis ,
Financial Institutions ,
Receivership ,
Silicon Valley ,
U.S. Treasury
Are SVB and Signature in bankruptcy?
No. Banks and other federally insured financial institutions (such as savings banks, savings associations, and credit unions) are not permitted to be debtors in a bankruptcy case....more
3/13/2023
/ Banking Sector ,
Banks ,
Deposit Accounts ,
Deposit Insurance ,
Depository Institutions ,
FDIC ,
Federal Reserve ,
Financial Crisis ,
Financial Institutions ,
Receivership ,
Silicon Valley ,
U.S. Treasury
Throughout US history, most businesses have been able to organize and operate without needing to disclose their ownership or management. This privacy afforded to businesses and their management, along with the protection of...more
On January 1, 2021, the Anti-Money Laundering Act of 2020 became law. Under the law, Congress gave the Treasury Department power to declare that cryptocurrency is a monetary instrument and that certain cryptocurrency...more
Within a few hours after its introduction on December 21, 2020 (and after months of partisan wrangling), the House of Representatives and the Senate overwhelmingly passed the first significant stimulus and relief legislation...more
The long seller’s market may be over, which is welcome news for many companies that are eager and able to acquire or expand a business.
Many businesses and business owners have struggled mightily under the COVID-19...more
7/30/2020
/ Acquisition Finance ,
Buyers ,
CARES Act ,
Coronavirus/COVID-19 ,
Due Diligence ,
Fraudulent Transfers ,
Insolvency ,
Letters of Intent ,
Liquidity ,
Main Street Lending Programs ,
Paycheck Protection Program (PPP) ,
Personal Protective Equipment ,
Social Distancing ,
Supply Chain ,
Warranty Insurance
On June 5, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020 (the “Flexibility Act”). The Flexibility Act amends key provisions of the Paycheck Protection Program (“PPP”)...more
Just a few weeks before the first Paycheck Protection Program (PPP) borrowers will become eligible to apply for forgiveness of their PPP loans, the US Small Business Administration (SBA) and the Department of the Treasury...more
The Board of Governors of the Federal Reserve System (the Fed) recently released terms for its Main Street Lending Program (MSLP), a program authorized under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)...more
5/7/2020
/ Banks ,
CARES Act ,
Credit Unions ,
EBITDA ,
Federal Reserve ,
Federal Savings Associations ,
FFIEC ,
Loans ,
Main Street Lending Programs ,
Main Street New Loan Facility ,
Paycheck Protection Program (PPP) ,
Small Business
As we have previously observed, on April 23, 2020, the U.S. Small Business Administration (SBA) issued guidance—and a warning—to Paycheck Protection Program (PPP) loan applicants and borrowers related to the certification of...more
Many businesses have followed with interest the news of public companies like Shake Shack and Ruth’s Chris Steak House taking out multi-million-dollar Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small...more
On the heels of the Paycheck Protection Program (PPP) Interim Final Rule issued on April 2, 2020, the Treasury Department and the Small Business Administration (SBA) released additional PPP guidelines in the form of FAQs on...more
The Federal Reserve Board recently unveiled several programs under the CARES Act. The two primary programs, the Main Street New Loan Facility and Main Street Expanded Loan Facility, are available to privately held mid-sized...more
4/10/2020
/ CARES Act ,
Comment Period ,
Coronavirus/COVID-19 ,
Credit Facilities ,
Federal Reserve ,
Financial Stimulus ,
Lenders ,
Main Street Lending Programs ,
Main Street New Loan Facility ,
Relief Measures ,
SBA ,
Special Purpose Vehicles ,
Term Sheets ,
U.S. Treasury
On April 2, 2020, the Treasury Department and Small Business Administration (SBA) unveiled an interim final rule for the Payroll Protection Program (PPP) and a revised application form.
The terms of the loans have changed to...more
The CARES Act amends the Small Business Act to provide up to $349 billion in emergency Paycheck Protection Program loans and up to $10 billion in Economic Injury Disaster Loans, to small and medium-sized businesses and...more