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).
This is a follow up to “Considerations for M&A Transactions During the COVID-19 Crisis.” See the initial post here.
Given the current disruptions caused by the COVID-19 global pandemic, an immediate challenge confronted by companies actively engaged in fundraising efforts is the adequacy of risk factor disclosures to prospective investors, especially in light of the impact of the current pandemic.
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.
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).
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:
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.
The rapidly evolving novel coronavirus (COVID-19) pandemic is raising for all of us a number of new and uncharted issues and challenges. For business enterprises, it can impact company culture, business operations and reputation. For most companies, the crisis likely will have more significant ramifications if it’s not managed well. While the issues and answers will differ among companies of different sizes, in diverse industries, and across varied geographic reaches, one common thread is that boards of directors/managers (boards) have oversight challenges in effectively overseeing management’s response. Below are some of our suggestions all boards should consider in facing the COVID-19 pandemic.
While today’s experience is largely unprecedented, we have seen in fairly recent economic history (such as the “great recession” of 2008-09) the impact of global business disruption and have learned coping mechanisms that will help reduce, although of course not eliminate, the collateral damage.
The global COVID-19 pandemic presents a host of time-sensitive issues that public companies should consider when drafting and evaluating their SEC disclosure. In a March 4 press release, SEC Chairman Jay Clayton reminded companies “to provide investors with insight regarding their assessment of, and plans for addressing, material risks to their business and operations resulting from the coronavirus to the fullest extent practicable to keep investors and markets informed of material developments.” As the situation is rapidly evolving, public companies should be frequently evaluating whether their existing disclosure needs to be updated to reflect the pandemic’s impact on their business. Some key considerations that management and boards should consider in this new environment include: