News & Analysis as of

Eligibility Determination Federal Loans Coronavirus/COVID-19

Proskauer Rose LLP

SBA Expands COVID Disaster Loans

Proskauer Rose LLP on

Effective September 8, 2021, the U.S. Small Business Administration (“SBA”) significantly expanded the ability of small businesses to apply for low-interest loans through the revised COVID Economic Injury Disaster Loan...more

Ballard Spahr LLP

UPDATED: Payroll Protection Program May Provide Relief to Eligible Small Businesses – If You Can Navigate the Workforce Issues

Ballard Spahr LLP on

Section 1102 of the CARES Act creates the Paycheck Protection Program (PPP), which is intended to provide funds for small businesses affected by COVID-19 to maintain their workforce. ...more

Lowndes

SBA Releases Borrower PPP Loan Forgiveness Application Including Step-by-Step Calculation Instructions

Lowndes on

On Friday evening, the Small Business Administration (“SBA”) and Treasury published the long-awaited Paycheck Protection Program (“PPP”) Loan Forgiveness Application. The form also provides for an Alternative Payroll Covered...more

Franczek P.C.

SBA Adopts “Safe Harbor” Provision for PPP Loan Recipients Under $2 Million.

Franczek P.C. on

In response to public criticism regarding the disbursement of loans to larger companies, on April 23, the Small Business Administration (SBA) issued guidance stressing that Paycheck Protection Program (PPP) loan applicants...more

Lewitt Hackman

PPP: Update on “Necessity” Requirement

Lewitt Hackman on

On March 27, 2020, Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which is an approximately $2 trillion stimulus and economic relief package....more

Bricker Graydon LLP

Two federal courts find SBA “ineligibility rules” inapplicable to PPP loans

Bricker Graydon LLP on

If your business was deemed “ineligible” for a Paycheck Protection Program (PPP) loan by your lender or the Small Business Administration (SBA) or you didn’t apply for a PPP loan for your business, because you believed your...more

Carlton Fields

Update on the Reserve Board's Main Street Program: Moves to Assist Larger Businesses

Carlton Fields on

A few weeks ago, we commented on the Federal Reserve’s newly unveiled Main Street Lending Program. We noted that the $600 billion lending effort was for businesses with up to 10,000 employees and up to $2.5 billion in 2019...more

Bilzin Sumberg

Main Street Lending Program Expansion Client Alert

Bilzin Sumberg on

The Federal Reserve Board on Thursday announced it is expanding the scope and eligibility for the Main Street Lending Program, the $600 billion program of financial assistance to small and medium-sized businesses authorized...more

Seyfarth Shaw LLP

Money for Main Street Update: Fed Releases Revised Main Street Lending Program Guidance and Terms

Seyfarth Shaw LLP on

On April 30, 2020, following a period of public comment, the Federal Reserve Board (“Fed”) published additional guidance and revisions to its Main Street Lending Program (the “Main Street Program”), expanding the program’s...more

Pierce Atwood LLP

COVID-19: PPP Loans – Economic Need Determinations

Pierce Atwood LLP on

***Update*** On April 28, Treasury Secretary Steven Mnuchin announced that the SBA will do a full review of any loan more than $2,000,000 under the PPP program. He also warned of criminal liability for borrowers who...more

Stinson - Corporate & Securities Law Blog

Reconsidering PPP Eligibility – Should Public Companies and Financially Strong Borrowers Repay PPP Loans?

A number of public companies applied for and received potentially forgivable loans under the Paycheck Protection Program (PPP). To be eligible for a PPP loan a borrower does not need to demonstrate that it is unable to obtain...more

Mayer Brown

Clear as Mud: SBA Offers Further Clarification to PPP Eligibility

Mayer Brown on

In FAQ #31 posted on April 23, 2020, the US Small Business Administration offered the following clarification (italics added): 31. Question: Do businesses owned by large companies with adequate sources of liquidity to...more

Cadwalader, Wickersham & Taft LLP

COVID-19 Update: Federal Investigators Prepare to Investigate and Prosecute Fraud in Emergency Loan Programs

Emergency COVID-19 relief legislation signed into law by President Trump, including the Coronavirus Aid, Recovery, and Economic Security Act (“CARES Act”), has allocated more than $2 trillion in economic aid to individuals,...more

Dechert LLP

COVID-19 Coronavirus Business Impact: Care To Elaborate? – Interpretive Issues Under The CARES Act Compensation Limits

Dechert LLP on

Companies receiving assistance under Title IV of the Coronavirus Aid Relief and Economic Security Act will be required to limit compensation payable to certain highly paid officers and employees. In general: - Officers and...more

Stinson LLP

COVID-19 Relief for Middle Market Companies: The Federal Reserve's Main Street Lending Program under the CARES Act

Stinson LLP on

With lending now underway under the well-known Paycheck Protection Program (PPP) established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) aimed at providing COVID-19 relief to small and medium...more

Morgan Lewis

CARES Act: Treasury Identifies Businesses ‘Critical to Maintaining National Security’

Morgan Lewis on

The US Department of the Treasury on April 10 released updated criteria outlining which businesses are eligible to apply for CARES Act loans out of the $17 billion allocated for businesses “critical to maintaining national...more

Franczek P.C.

SBA Issues New FAQs regarding the Paycheck Protection Program

Franczek P.C. on

To clear up some uncertainty in the language of the CARES Act’s Payroll Protection Program (“PPP”) and the subsequent interim final rules, the Small Business Administration (“SBA”) issued Frequently Asked Questions (“FAQs”)...more

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