Inflation Reduction Act
Major Changes Coming To PPP With Paycheck Protection Flexibility Act
The Paycheck Protection Program Flexibility Act (PPFA), passed by both houses as of June 3, makes significant changes to the Paycheck Protection Program affecting both new and existing loans, including reducing the amount of loan proceeds that must be spent...
New Rules Issued Clarifying PPP Loan Forgiveness, Lender Responsibilities and SBA Review
On May 22, the SBA and Treasury released two additional interim final rules (IFRs) on PPP loan forgiveness, providing specific guidance to borrowers and lenders regarding their responsibilities, as well as information on the SBA’s process for reviewing loans for...
Guide to Federal Reserve Main Street Loan Facilities and Primary Market Corporate Credit Facility
The Federal Reserve has created a number of programs to provide loans and other credit facilities to support the economy in response to COVID-19. Several of these programs provide for new extensions of credit for small, medium and large businesses...
SBA Releases Long-Awaited PPP Forgiveness Application and Instructions
On May 15, the SBA and Treasury released the long-awaited PPP loan forgiveness application and related guidance , providing much-needed clarity and ending weeks of speculation about how borrowers will obtain loan forgiveness. The application and instructions confirm that if...
SBA Revises Certification Rules: Safe Harbor for Loans Under $2 Million, Larger Loans Still Subject to Audit
The Small Business Administration has issued new guidance regarding the certification of necessity under the Paycheck Protection Program. Now, borrowers who received loans for less than $2 million -- roughly 98% of PPP loans to date -- will automatically “be...
New Guidance: SBA Clarifies That Foreign Employees Must Be Counted for PPP
The Small Business Administration has clarified through newly-issued guidance that employees of foreign affiliates must be counted when determining the size of a business for eligibility under the Paycheck Protection Program. This new guidance, which is part of a steady...
Mnuchin Warns of Criminal Liability for PPP; Promises to Audit Large Loans
On April 28, Treasury Secretary Steven Mnuchin announced the SBA would be conducting audits of all businesses that received greater than $2 million in PPP loans, reiterating his warning from last week that businesses borrowing under the Paycheck Protection Program...
New SBA Guidance: Private Equity Eligibility, Debtors in Bankruptcy, and a Safe Harbor
Shortly after the passage of a bill injecting an additional $310 billion into the Small Business Administration’s Paycheck Protection Program, the SBA has issued another supplemental Interim Final Rule (IFR) providing new guidance on several issues, including eligibility for hedge...
Bracewell Legal Bites: 5 Things to Consider About Force Majeure Relief
During the coronavirus lockdown, many companies are turning to their contracts to consider whether relief might be available under force majeure provisions. Watch this Bracewell Legal Brief, where Darren Spalding, a partner in our London office, details 5 key issues...
Class Actions Begin: Plaintiffs Target Banks for PPP Loan Processing
A number of class-action lawsuits have been filed targeting national and community banks for their processing of loans under the Small Business Administration’s Paycheck Protection Program (PPP). It is not surprising that disputes have already arisen, given the swift creation...
Despite COVID-19, SEC and FINRA Maintain Regulation BI Compliance Date
Although the SEC has been granting regulatory relief in a number of areas as a result of the COVID-19 outbreak, its Office of Compliance, Inspections and Exams (OCIE) confirmed in a recent Risk Alert that Regulation Best Interest (“Regulation BI”)...
Montana District Court Vacates and Remands Clean Water Act Nationwide Permit 12
In a surprisingly broad decision, the District of Montana vacated the U.S. Army Corps of Engineers (“Corps”) Nationwide Permit (“NWP”) 12 on April 15, 2020. NWP 12 authorizes impacts from “utility line activities” to jurisdictional waters that have minimal individual...
Creating a Roadmap for Banks to Mitigate Risk Under the SBA Paycheck Protection Program
On April 2, the Small Business Administration (“SBA”) issued the long-anticipated Interim Final Rule that sets out the current agency guidance regarding requirements that borrowers and lenders must follow in order to apply for and process loans, respectively, under the...
Expanded CISA Guidelines Broadens the Scope of “Essential Business” for Manufacturing and Construction Operations
As states and other jurisdictions continue to implement, amend, and clarify their stay-at-home orders, many continue to define Essential Businesses through the guidelines issued by the Cybersecurity and Infrastructure Security Agency (CISA). Approximately twenty states have referenced the Guidelines, including...
Stay-At-Home Orders – 10 Step Evaluation Process For Manufacturers
In the week following our initial client alert regarding the effect of government stay-at-home orders on your manufacturing operations, approximately 27 states (and many other local authorities) have implemented a version of a stay-at-home order. Many of these same states...