May 2020

Paycheck Protection Program: SBA Extends Safe Harbor Deadline to 5/18 and Issues New Guidance on “Necessity of the Loan” Certification

On May 13, 2020, the SBA issued additional guidance extending the safe harbor period for PPP borrowers’  to make a determination of their “necessity of the loan” certification in light of the newly issued SBA guidance, from May 14, 2020 to May 18, 2…

House Democrats Propose Significant Changes to Paycheck Protection Program in New $3 Trillion Stimulus Bill

Update: On Friday, May 15, 2020, the House passed H.R. 6800 (the "HEROES Act" for short) by a vote of 208-199.In a new $3 trillion stimulus bill (H.R. 6800) introduced in the House of Representatives on May 12, House Democrats proposed various measures to …

Federal Reserve Revises and Expands Main Street Lending Program For Small and Mid-sized Businesses

On April 9, 2020, the Federal Reserve announced the creation of a Main Street Lending Program to facilitate lending to small and mid-sized businesses. On April 30, 2020, the Federal Reserve announced revisions to this program, including an expansion of the…

IRS Blesses “Dial-In” TEFRA Hearings and Enhances Bond Self-Purchase Guidance in Response to COVID-19 Emergency

On May 4, 2020, the Treasury Department and the Internal Revenue Service released two guidance pieces designed to address issues currently challenging the public finance markets as a result of the COVID-19 pandemic.  The first release, Revenue Procedure 2…

Paycheck Protection Program: Deadline Extended to 5/14, Updated Guidance on Other Sources of Liquidity

Update: On May 5, 2020, the SBA issued Frequently Asked Question #43 which extended the repayment date for the safe harbor described below to May 14, 2020, and indicated that further SBA Guidance as to how it will review the “necessity of the loan” cer…

SBA Issues New FAQ Clarifying Effect of Employees Who Won’t Return to Work on Paycheck Protection Program Loan Forgiveness

One of the most attractive features of the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) loans is a borrower’s eligibility for loan forgiveness if loan proceeds are spent appropriately. However, the amount of the l…