Topic Archives: Coronavirus

May 19, 2020Coronavirus, Small Business

PPP Loan Forgiveness Application is Finally Here

During these uncertain economic times, the Small Business Administration (SBA) loans under the Paycheck Protection Program (PPP) have been a critical lifeline for many small businesses trying to weather the COVID-19 pandemic.  The PPP, which we have written about previously, is part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).  One of ...›

Are Foreign Employees Included in Calculating Size for PPP’s 500-Employee Size Standard? New Guidance Makes the Answer Unclear

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 allow potentially the entire loan amount to be forgiven if the ...›

May 12, 2020Coronavirus, M&A

M&A Considerations Regarding CARES Act Loan Programs and Other Relief

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 careful to ensure that their transaction activities do not inadvertently alter ...›

May 6, 2020Coronavirus, Small Business

Is My Company’s PPP Loan “Necessary to Support Ongoing Operations?” What If I’m Wrong?

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 Paycheck Protection Program (PPP), it is important to separate what guidance ...›

The Basics of Undefinitized Contractual Actions (UCAs)

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 to use available tools to accelerate cash flow to contractors and ...›

May 5, 2020Coronavirus, Small Business

CARES SBA Loan Eligibility and Process (UPDATED)

(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 last year, whichever is less, from the Small Business Administration (“SBA”). ...›

April 27, 2020Coronavirus, Small Business

House Passes a $484 Billion Relief Package; Treasury and the SBA Release New Guidelines for PPP Loans

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), which had its initial $349 billion in appropriated funding exhausted just ...›

April 10, 2020Coronavirus, Small Business

SBA Overhauls the Disaster Loan Application Process in Response to the CARES Act

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, to expedite the loan processing, SBA streamlined the application process.  This ...›

April 9, 2020Coronavirus

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 sick leave) that were incurred to keep employees in a ready ...›