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Round Two of the PPP Up and Running as of Today

Big news for new and certain existing borrowers interested in obtaining loans (or additional loans) under the Paycheck Protection Program: starting today (January 11), the PPP is once again open for business. But there are caveats. (Read More)

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$900 Billion Coronavirus Relief Package Is Now Law

Last week, Michelman & Robinson, LLP reported on the $900 billion COVID-19-related rescue package passed by Congress. As was explained in some detail here, the legislation is designed to deliver long-awaited financial assistance to small businesses, as well as to the millions of unemployed Americans in need. By its terms, the bill will also provide, among other things, housing assistance, funds for schools and colleges, and money for COVID-19 testing and vaccines, including distribution. (Read More)

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Paycheck Protection Program: The Sequel

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. (Read More)

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New Cal/OSHA Mandates in Effect That Require Immediate Employer Attention

As employers continue to grapple with the impact of the coronavirus pandemic upon the workplace, California’s Division of Occupational Safety and Health (Cal/OSHA) has adopted emergency temporary standards (ETS) that went into effect on November 30, 2020. The ETS, which will last for at least 180 days and are subject to extension, require most California employers to act immediately on several COVID-19-related fronts, including the implementation of written COVID-19 prevention programs that satisfy specific criteria. (Read More)

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New Statewide Stay-at-Home Orders in Effect as COVID-19 Surges

Nearly nine months since the first stay-at-home and “safer-at home” orders were issued in California, residents in the Golden State are once again subject to government-mandated restrictions in another effort to flatten the curve—this as COVID-19-related infection rates, hospitalizations and deaths throughout the state are at record highs. In response to the winter surge of the novel coronavirus and the resulting shortage of beds in intensive care units from San Diego in the south to the Bay Area in the north, Governor Gavin Newsom has announced new regional stay-at-home orders that will, as of this writing, impact 28 counties that encompass 84% of California’s population (that is more than 33 million people). (Read More)

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Congress Working Toward $908 Billion Coronavirus Relief Package

This month, as COVID-19 infections, hospitalizations and death rates soar, and businesses large and small and out-of-work Americans continue to feel the weight of the ongoing pandemic, lawmakers on both sides of the political aisle have been working on a compromise coronavirus aid package worth somewhere in the neighborhood of $908 billion.

Certainly, a follow-up relief plan would be welcomed by those suffering through the worst economic crisis since the Great Depression. Unfortunately, in the wake of the CARES Act (including the Paycheck Protection Program), there has been no consensus on additional financial aid at the federal level. But now, it appears the impasse may be breaking as Congress faces increasing pressure to do something as the nation stares down a seasonal surge in COVID-19 cases and the resulting economic fallout. (Read More)

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Direct Physical Loss and Business Interruption Coverage in the Wake of COVID-19

Just over a week ago, Michelman & Robinson reported on the countless entities nationwide that are being denied the benefits of business interruption coverage their insurance policies provide—this despite the losses they are suffering due to COVID-19-related shutdowns and disruptions to business. While our prior alert focused on the failure of carriers to conduct thorough and proper investigations before denying these claims, here we discuss a recent judicial decision that pertains to a frequent basis for the refusal of coverage: the concepts of “direct physical loss” to property, as well as the “virus” exclusion that many policies contain. (Read More)

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California Law Now Conforms to Federal Income Tax Treatment of PPP Loan Forgiveness

Last month, Governor Gavin Newsom signed Assembly Bill 1577 into law, which amends California’s tax code as it relates to loan forgiveness under the Paycheck Protection Program.

As Michelman & Robinson has reported time and again, PPP loans are subject to forgiveness when borrowers use proceeds to pay for payroll costs, interest on mortgage obligations, rent, and utilities. More good news for borrowers is that for purposes of federal income taxation, existing federal law excludes from gross income any amounts of PPP loans that are forgiven. (Read More)

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Hope for Companies Where COVID-19-Related Business Interruption Claims Have Been Denied Without Investigation

One of the several painful effects of the COVID-19 pandemic is that countless businesses have suffered and even been forced to shutter. This is the case despite the fact that many of them have insurance policies that not only protect from damage to property, but also typically cover lost profits from business interruption. Nevertheless, companies large and small are not reaping the benefits of their insurance policies because carriers are denying business interruption claims without proper investigation. (Read More)

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PPP Loan Borrowers At Risk for Potential Federal False Claims Act Liability

As if the COVID-19 pandemic and its impact on small businesses have not been enough of a stressor and burden, these entities could face potential liability under the False Claims Act to the extent they have obtained Paycheck Protection Program (PPP) loans. That is right, it is possible that such liability will attach by virtue of the good faith certifications PPP borrowers were required to make to receive federal funding. Michelman & Robinson explains. (Read More)