Contracting in the Fog of War: Recovering Costs Caused by an Epidemic
- Like the rest of the nation, and indeed the whole world, contractors today are fighting a war against an invisible enemy. As we observed in a previous post , responding to COVID-19 raises wartime contracting issues on the home front and abroad. In “... ›
Are Foreign Employees Included in Calculating Size for PPP’s 500-Employee Size Standard? New Guidance Makes the Answer Unclear
By: Damien C. Specht, Tina D. Reynolds and Alissandra Young McCann
Updated May 18, 2020 As many companies are likely aware by now, Small Business Administration (SBA) loans under the Paycheck Protection Program (PPP) provide aid to qualifying small businesses in the form of loans with terms favorable to borrowers, including, in particular, provisions that... ›M&A Considerations Regarding CARES Act Loan Programs and Other Relief
By: Tina D. Reynolds, Spencer D. Klein and Alex Rheaume
In recent weeks Congress has authorized funding for a number of programs intended to provide relief to small- and medium-sized businesses and certain particularly hard-hit industry sectors, as well as to American businesses more generally. The parties to a potential M&A transaction must be... ›The Basics of Undefinitized Contractual Actions (UCAs)
By: Lyle F. Hedgecock
The federal contracting process is famous for its exacting approach to competitive procurement, which safeguards taxpayer funds and principles of fairness. This emphasis on process, however, can slow the wheels of the acquisition machine. The rapid spread of COVID-19, however, has required the government... ›Is My Company’s PPP Loan “Necessary to Support Ongoing Operations?” What If I’m Wrong?
By: Tina D. Reynolds and Damien C. Specht
This post has been updated on May 6, 2020 with new safe harbor deadline for repayment of PPP loans. Given the proliferation of adverse news articles and TV pundit segments about well-funded companies that have received federal, Small Business Administration (SBA) loans under the... ›CARES SBA Loan Eligibility and Process (UPDATED)
By: Tina D. Reynolds and Damien C. Specht
(This post has been updated on May 5, 2020) The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) allows certain eligible companies and individuals to obtain loans of up to $10 million or 2.5 times the average monthly payroll costs over the... ›House Passes a $484 Billion Relief Package; Treasury and the SBA Release New Guidelines for PPP Loans
By: Tina D. Reynolds and Damien C. Specht
On Thursday, April 23, 2020, the U.S. House of Representatives voted in favor of the $484 billion relief package that passed in the Senate earlier this week. Once signed into law, the legislation will revive the Small Business Administration (SBA) Paycheck Protection Program (PPP),... ›SBA Overhauls the Disaster Loan Application Process in Response to the CARES Act
By: Damien C. Specht
During these uncertain times, small businesses have been pursuing both Paycheck Protection Program and SBA Economic Injury Disaster loans. Note, however, that Disaster loan applications submitted manually to the SBA prior to March 27 may require resubmission. After the passage of the CARES Act,... ›Limits on a Contractor’s Ability to Recover for Unforeseen Risks in the Age of COVID-19
By: J. Alex Ward and Victoria Dalcourt Angle
Communities across the country and around the world are fighting a war against COVID‑19. This is also true – maybe even especially true – for government contractors. Responding to COVID-19 raises wartime contracting issues on the home front and abroad. As we previously observed... ›Guidance Issued for CARES Act Relief For Contractors
In an earlier post concerning contractor relief under the CARES Act, we noted Section 3610 as one of the provisions most likely to benefit government contractors directly because it allowed for agencies to modify contracts to reimburse contractors for costs associated with paid leave (including... ›