CARES Act – COVID Considerations

PPP Loan Forgiveness, the Paycheck Protection Program Flexibility Act, and an Application Calculator

June 19, 2020
By: Chad Porter & Mark Manning & Amanda Adam

The U.S. Small Business Administration (“SBA”) has released an updated PPP Loan Forgiveness Application (and related instructions) and a shorter EZ Form application for certain qualified borrowers and related instructions with respect to the Paycheck Protection Program (“”). These releases followed the enactment of the Paycheck Protection Program Flexibility Act (“PPPFA”) which amended the previously enacted CARES Act. The SBA has also released Interim Final Rule as to PPP loan forgiveness, which has been revised by Revisions-to-First-Interim-Final-Rule (as revised, “IFR”) and the PPPFA will guide PPP borrowers as to use of loan funds and applications for forgiveness. Below we discuss some key considerations to keep in mind as you review the application, IFR, and PPPFA in relation to the PPP loan forgiveness process. read more

1

Returning to the Workplace: What Employers Need to Know

May 22, 2020
By: Mary Kate Geraghty & Evelyn Haralampu

As states begin to their introduce plans to reopen their economies, employers are understandably anxious about bringing employees back to the physical workplace. While returning to work will look different for each employer, there are several global considerations that all employers should keep in mind. read more

Maximizing PPP Loan Forgiveness with Compensation Planning

May 7, 2020
By: Evelyn Haralampu

The goal for those with Paycheck Protection Program (“PPP”) loans is to have the amount borrowed forgiven. Borrowers that can turn a PPP loan into a grant can defray lost revenues during the COVID-19 crisis. Meeting the requirements for forgiveness is key, but can be thwarted if the employer had to lay off or furlough staff. (For more information on the PPP, browse our various articles on the subject). read more

Employment Taxes and Increasing Cash Flow

April 9, 2020
By: Evelyn Haralampu

The CARES Act provides two tools for boosting an employer’s cash flow by reducing its employment taxes through a tax credit, and by delaying payment of certain payroll taxes. read more

Suit Filed Against Governor Baker to Re-open Recreational Marijuana Businesses

April 9, 2020
By: Frank A. Segall

On Tuesday, April 7, 2020, five recreational (adult-use) marijuana companies and one individual, a veteran of the U.S. armed forces, filed suit against Massachusetts Governor Charles Baker, seeking declaratory and injunctive relief that would, if successful, nullify the Governor’s executive orders to classify recreational marijuana establishments as “non-essential”, which has forced them to close shop. On March 23, 2020, in light of the COVID-19 crisis, Governor Baker issued an executive order that all “non-essential” businesses close their physical (brick-and-mortar) facilities until April 7, 2020 (extended to May 4, 2020 by a subsequent executive order). While medical marijuana establishments were deemed “essential” and therefore able to remain open, recreational marijuana facilities were not. The following are some of the key takeaways from the complaint filed in connection with the suit and related issues impacting the recreational marijuana industry as a result of their forced cessation of operations. read more

1

Further Guidance: The Paycheck Protection Program for Small Businesses

April 5, 2020
By: Frank A. Segall & Chad Porter

We previously issued an advisory providing guidance on a number of federal, state and private funding relief alternatives to provide capital to small businesses during the COVID-19 disaster recovery process, including as to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). read more

SBA Economic Injury Disaster Loan Assistance is Available for Industrial Hemp Businesses

March 31, 2020
By: Frank A. Segall & Scott H. Moskol

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was recently passed in response to the COVID-19 pandemic to provide much-needed economic relief to individuals and businesses. The Small Business Administration (SBA) is now offering the Paycheck Protection Program (PPP) and federal disaster loans for working capital via the Economic Injury Disaster Loan (EIDL) program to small businesses and non-profits to help small businesses in the U.S. stay afloat during this historic emergency. Although these programs are not available to state licensed cannabis related businesses, it is available for hemp producers and manufacturers. Here are 5 take-aways about the SBA’s EIDL and PPP programs: read more

Q&A: Business Financing During COVID-19

March 31, 2020
By: Frank A. Segall

This article originally appeared on Citybizlist as part of a series featuring Burns & Levinson attorneys helping businesses and individuals navigate the many challenges that COVID-19 presents. read more

Federal COVID-19 Disaster Aid May Not Be Available for VC- and PE-Backed Companies

March 30, 2020
By: Robert Chow

Who may be disqualified from aid? Many venture capital-backed and most private equity-backed companies will be ineligible to qualify for the Paycheck Protection Program and enhanced Economic Injury Disaster Loans under the recently adopted CARES Act unless regulations for determining whether a company qualifies as a “small business” are waived or modified. read more

CARES ACT: Lending Provisions and the Small Business Administration

March 30, 2020
By: Cornelius Chapman

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) contains a number of provisions that affect federal government loan assistance programs, the U.S. Small Business Administration (SBA) that administers them, and the private sector lenders that participate in them. Here is a summary of some of the more important changes that the CARES Act makes to current law: read more