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
5/15/2020
/ Borrowers ,
CARES Act ,
Certification Requirements ,
Coronavirus/COVID-19 ,
Good Faith ,
Loan Forgiveness ,
Paycheck Protection Program (PPP) ,
Returned Funds ,
Safe Harbors ,
SBA ,
SBA Lending Programs
On April 30, 2020 the Federal Reserve Board (the "Board") announced an expansion of the scope and eligibility for its Main Street Lending Program.
Under the three Facilities—the Main Street New Loan Facility (the "New...more
5/13/2020
/ Borrowers ,
CARES Act ,
Certification Requirements ,
Compliance ,
Credit Unions ,
EBITDA ,
Eligibility ,
Employee Retention ,
Federal Reserve ,
Financial Stimulus ,
Lenders ,
Loan Origination Funds ,
Main Street Lending Programs ,
Midsize and Large Business Loans ,
Relief Measures ,
Small Business Loans ,
Special Purpose Vehicles
PPP Loan Proceeds Return Date Extended -
On April 23, 2020, the U.S. Department of the Treasury and Small Business Administration (SBA) announced that public companies receiving Paycheck Protection Program (PPP) loans, who...more
On May 7, 2020, the IRS issued Notice 2020-32 to provide guidance concerning the deductibility for Federal income tax purposes of otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer...more
PPP Loan Forgiveness is Criticized, Guidance is Forthcoming -
Audits of PPP Loans in Excess of $2 Million -
On April 28, 2020, U.S. Secretary of Treasury Steven Mnuchin announced that all Paycheck Protection Program...more
As part of the Paycheck Protection Program ("PPP") loan application, an applicant must certify, among other things, that "current economic uncertainty makes this loan request necessary to support ongoing operations of the...more
4/27/2020
/ Coronavirus/COVID-19 ,
Financial Distress ,
Liquidity ,
Loan Forgiveness ,
Midsize and Large Business Loans ,
Paycheck Protection Program (PPP) ,
Pre-Qualification ,
Relief Measures ,
SBA ,
Small Business ,
Small Business Loans
In a recent alert, we reviewed a series of developments regarding implementation of the $2.2 trillion federal CARES Act, including news that the Federal Reserve had released details on two new loan facilities. This alert...more
4/16/2020
/ Attestation Requirements ,
CARES Act ,
Coronavirus/COVID-19 ,
EBITDA ,
Eligibility ,
Federal Reserve ,
Main Street Lending Programs ,
Paycheck Protection Program (PPP) ,
Relief Measures ,
Special Purpose Vehicles ,
U.S. Treasury
The CARES Act established the Paycheck Protection Program ("PPP" or "Program"), which provides nearly $350 billion in forgivable loans designed to keep workers employed during the COVID-19 crisis. In this alert, we are...more
4/15/2020
/ Borrowers ,
Economic Injury Disaster Loans ,
Lenders ,
Loan Agreements ,
Loan Applications ,
Loan Forgiveness ,
Main Street Lending Programs ,
New Guidance ,
Paycheck Protection Program (PPP) ,
Popular ,
SBA
The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted late last week. Designed to provide emergency economic assistance to businesses, families, and individuals, the CARES Act also...more
4/7/2020
/ Bank Debt Guarantee Program (BDGP) ,
Banks ,
CARES Act ,
CBLR ,
Community Banks ,
Coronavirus/COVID-19 ,
Current Expected Credit Losses (CECL) ,
Debt Restructuring ,
Financial Stimulus ,
Interim Rule ,
Loans ,
Paycheck Protection Program (PPP) ,
Relief Measures
The COVID-19 crisis is having a very substantial impact on many businesses. On a daily basis, they are struggling to continue their operations while facing mounting economic losses and ongoing cash flow shortfalls. A number...more
4/2/2020
/ Annual Meeting ,
Board of Directors ,
Business Closures ,
Business Interruption ,
Commercial Insurance Policies ,
Coronavirus/COVID-19 ,
Economic Injury Disaster Loans ,
Financial Distress ,
Force Majeure Clause ,
Line of Credit ,
Loan Agreements ,
Shareholder Meetings ,
Sick Employees ,
Sick Pay ,
Small Business Loans ,
State of Emergency ,
Supply Chain ,
Virtual Meetings ,
Workplace Safety
As social distancing policies and mandates continue to take hold across the country, companies are grappling to understand the implications of these measures on their business. One compliance issue to resolve is that...more
3/28/2020
/ Annual Meeting ,
Board Meetings ,
Board of Directors ,
Bylaws ,
Coronavirus/COVID-19 ,
Corporate Governance ,
Proxy Statements ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Shareholder Meetings ,
Shelter-In-Place ,
Virtual Meetings
On March 4, 2020, the SEC proposed a set of amendments designed to simplify and improve the exempt offering framework. The SEC's stated goal is to make it easier for issuers to access the capital markets and to provide...more
Cannabis -
With the passage of legislation by the Illinois General Assembly, Illinois became the 11th state (along with the District of Columbia) to allow the recreational use of marijuana. In addition, 33 states and the...more
On September 17, 2019, the federal bank regulatory agencies (the "Agencies") adopted a new rule to provide for a simplified measure of capital adequacy for certain community banking organizations. The rule takes effect on...more
With the passage of legislation by the Illinois General Assembly, Illinois became the 11th state (along with the District of Columbia) to allow the recreational use of marijuana. In addition, 33 states and the District of...more
In 1980, the Federal Reserve Board (the "FRB") issued a Small Bank Holding Company Policy Statement (the "Policy Statement") which applied to bank holding companies ("BHCs") with pro forma consolidated assets of less than...more
In order to sell securities (notes, common stock, preferred stock, membership interests in an LLC), a company must either register the sale under federal and state securities laws or find an exemption from such registration...more
8/11/2017
/ Accredited Investors ,
Bad Actors ,
Crowdfunding ,
Exemptions ,
Private Equity ,
Private Placements ,
Regulation A ,
Regulation D ,
Rule 147 ,
Rule 147A ,
Rule 504 ,
Rule 505