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Paycheck Protection Program Extended to August 8th

Those still wanting to apply for loans under the Paycheck Protection Program now have until August 8 to do so. The PPP, which was set to expire on June 30, has been extended by way of a bill passed by both the U.S. Senate and House of Representatives and signed into law by the President on July 4. (Read More)

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PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility

Last night (June 30), with the deadline to apply for a loan pursuant to the Paycheck Protection Program set to expire—and with that nearly $130B in allocated funds being left untapped and on the table—the U.S. Senate passed an extension of the program to August 8. Whether the extension passes in the U.S. House of Representatives and is then signed into law is likely but remains to be seen; a House vote is pending as of this writing. In the meantime, attention continues to turn to the loan forgiveness process. (Read More)

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Defy State and Local Executive Orders at Your Own Risk

The COVID-19 pandemic has spawned numerous executive orders at both the state and local levels. From stay-at-home mandates to directives requiring face coverings and social distancing, laws are now in place throughout the country, all geared to stem the tide of the coronavirus. That being said, many businesses and individuals are unsure if they can be subject to legal liability for failing to obey executive orders issued by governors and mayors nationwide. As a matter of fact and law, they can. Make no mistake, businesses and individuals that run afoul of executive orders (related to COVID-19 or otherwise) may be held criminally and, in some cases, civilly liable. (Read More)

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PPP Loan Forgiveness Application Forms Updated and Streamlined

The Small Business Administration has released a shortened “EZ” Paycheck Protection Program loan forgiveness application form—Form 3508EZ—that can be found here.Form 3508EZ is a streamlined update to the SBA’s prior loan forgiveness application and meant to be simpler and more efficient to complete. (Read More)

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Senate Passes Paycheck Protection Program Flexibility Act of 2020

As Michelman & Robinson previously reported, the U.S. House of Representatives recently introduced the Paycheck Protection Program Flexibility Act of 2020 (the Flexibility Act). That bill, albeit slightly amended, was passed by the House early last week, and the Senate followed suit yesterday (June 3), passing the Flexibility Act by voice vote. The text of the legislation can be found here.

The major provisions of the bill, as passed, give business owners more flexibility and time to use PPP loan money and still qualify for forgiveness. (Read More)

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House Contemplates Revisions to the Paycheck Protection Program

This week, the United States House of Representatives is set to take action on a bipartisan bill coined the Paycheck Protection Program Flexibility Act of 2020 (the Flexibility Act). Introduced by Reps. Dean Phillips (D-MN) and Chip Roy (R-TX) on May 15, the law, if passed, would make certain substantive changes to the PPP, as described below. (Read More)

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SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act

Michelman & Robinson previously reported that federal assistance could be on the horizon for legitimate cannabis-related businesses and their service providers in the wake of the coronavirus pandemic. If Democrats in the U.S. House of Representatives have their way, that help could come sooner rather than later, as legislators have baked provisions into the pending HEROES Act aimed at providing cannabusiness's access to financial services, like banking. (Read More)

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U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package

This week, Democrats in the U.S. House of Representatives introduced the HEROES ACT, a new $3T coronavirus stimulus package that, if passed, will grant further economic relief—this time to a wide array of industries and Americans still suffering from the impact of COVID-19. The House official government website has posted the proposed bill, which can be found here. For those who would rather not read the 1,815-page legislation, which is expected to meet with plenty of Republican opposition in the Senate, Michelman & Robinson summarizes the major provisions below. (Read More)

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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

Click here to read the lawsuit.

There continues to be significant backlash about the Paycheck Protection Program and loans being taken by not-so-small businesses like Ruth’s Hospitality Group (operator of the Ruth’s Chris Steak House chain), Auto Nation, and even the Los Angeles Lakers, which has put U.S. Treasury Secretary Steven Mnuchin on the defensive. On the heels of his recent comment that PPP borrowers improperly certifying their needs for relief under the CARES Act will suffer “severe consequences,” comes Mnuchin’s statement last week that, “for any loan over $2M, the Small Business Administration will be doing a full review of that loan before there is loan forgiveness.” (Read More)

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Fed Updates Terms of Main Street Lending Program

Yesterday (April 30, 2020), the Federal Reserve released the most current terms of the Main Street Lending Program. While the loan facility, as authorized by the CARES Act, has yet to take effect, the period for public comment has ended.

Michelman & Robinson previously posted an alert prior to the close of the pubic comment period answering questions about the plan. As we anticipate the Main Street Lending Program’s imminent roll out, we thought it important to provide this update that includes the latest information (mostly applicable to borrowers) from the Fed. Of note, the terms of the program are not final and subject to change. (Read More)