december 28, 2020
DECEMBER 23, 2020
- Paycheck Protection Program: The Sequel
- Taking the Shot: Can You Require Your Employees to Get Vaccinated Against COVID-19?
- What Employees Need to Know About the Pending $900 Billion COVID-19 Relief Package
december 21, 2020
december 10, 2020
december 7, 2020
- New Statewide Stay-at-Home Orders in Effect as COVID-19 Surges
- Congress Working Toward $908 Billion Coronavirus Relief Package
october 28, 2020
october 22, 2020
October 19, 2020
october 15, 2020
october 12, 2020
october 8, 2020
october 5, 2020
september 22, 2020
september 21, 2020
September 11, 2020
august 4, 2020
july 6, 2020
july 1, 2020
- PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility
- California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19
June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
June 4, 2020
may 29, 2020
may 28, 2020
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
- Businesses Reopen in Los Angeles County as Stage 2 of California’s Statewide Plan Begins
- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
MARCH 16, 2020
MARCH 5, 2020
Paycheck Protection Program: The Sequel
BRYAN JOHNSON, SAMUEL LICKER
DECEMBER 23, 2020
The Consolidated Appropriations Act, 2021, passed this week by Congress and, as of this writing, awaiting President Trump’s signature, provides $900 billion in COVID-19-related relief. That includes additional Paycheck Protection Program money—some $280 million in all that some have dubbed “PPP2.”
If and when the 5593-page bill becomes law (Trump has suggested he might veto the legislation if Americans in need do not receive larger direct relief payments), small businesses will be able to avail themselves of another round of potentially forgivable loans. This is true whether or not they previously obtained PPP proceeds. Michelman & Robinson, LLP explains.
Companies That Have Not Already Received PPP Funds
If your small business has yet to receive a PPP loan, now is the time to apply for one, assuming you qualify. The process is largely the same as it originally was when the CARES Act was enacted, though the forgiveness application has been simplified for some borrowers and the eligibility requirements expanded. There has also been a modification to the term “covered period,” which is now defined as the period beginning on the date of the origination of a covered loan and ending either on the date eight or 24 weeks after origination, as elected by the loan recipient.
There is more. PPP eligibility has been extended to certain non-profit organizations designated under 501(c)(6) of the U.S. tax code, including local chambers of commerce. News organizations with 500 or fewer employees and FCC-licensed broadcasters are eligible as well.
Not surprisingly, given some of the backlash and outcries last spring about certain PPP loan recipients, publicly traded companies are ineligible for the new round of loans. So too are businesses that were not in operation on February 15, 2020.
Companies That Have Already Received PPP Loans
Even if your small business already received some form of PPP funding, you may nevertheless be eligible for additional loan proceeds. To qualify, certain criteria must be met, including a showing of significant losses in 2020, as compared to 2019 (read: at least a 25% drop off in revenue). Further, only businesses with fewer than 300 employees can apply for more PPP funding, and the maximum amount available is $2 million.
Loan Forgiveness
As mentioned, the pending relief bill provides for a simplified forgiveness application for some borrowers. A recipient of a PPP loan under $150,000 will only need to furnish (1) a one-page certification providing the number of employees retained because of the loan, the estimated amount of proceeds spent on payroll costs, and the total loan value; and (2) an attestation that the borrower has complied with all applicable PPP requirements.
Additional Eligible Expenses
The relief bill also expands the allowable uses of PPP loans, now including “covered property damage costs, … covered supplier costs, … [and] covered worker protection expenditures.” The covered property damage costs appear to be in response to civil unrest experienced this past summer, which resulted in damage to businesses across the country. For their part, covered supplier costs are meant to assist small businesses in meeting obligations with respect to vendor payments. And finally, covered worker protection expenditures relate to costs associated with outfitting workplaces with COVID-compliant protections and for the purchase of personal protective equipment (PPE) to protect employees and visitors in the workplace.
Deductibility of Business-Related Expenses
There has been much discussion about the deductibility of business-related expenses paid for with PPP funds. Per various revenue rulings promulgated by the IRS, these expenses were previously deemed not deductible. However, the new round of relief includes a provision that expressly allows for the deduction of business-related expenses paid for with PPP loan proceeds. As such, the legislation awaiting President Trump’s signature reverses the IRS decisions made earlier this year and provides that business expenses paid for with PPP loans may be tax deductible.
The attorneys in M&R’s COVID-19 Practice Group will continue to review the full scope of the legislation and circulate updates as necessary. In the meantime, do not hesitate to contact us should you need assistance with PPP.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.