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Paul Zimmerman

Showing 5 posts by Peter F. Cifichiello.

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Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief

As Michelman & Robinson previously reported, the lending programs authorized under the CARES Act cannot be accessed by legal cannabis businesses and certain companies indirectly related to the industry. Consequently, players in the legal cannabis space have been beholden to the states for any and all assistance in the wake of the coronavirus pandemic, including the ability to remain open for business in some jurisdictions despite the issuance of stay-at-home and similar orders. (Read More)

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Coronavirus Buzzkill: CARES Act Overlooks Cannabis

The CARES Act was enacted with much fanfare as a $2T boost to the U.S. economy devastated by the COVID-19 pandemic. In fact, the federal stimulus package—which includes individual recovery rebates, targeted lending to businesses, and tax credits aimed at the preservation of employment—has been a welcome lifeline for many, though there is at least one industry that the CARES Act leaves out in the cold: legal cannabis. (Read More)

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Paycheck Protection Program Funds Exhausted

As of today (April 16, 2020), the Small Business Administration’s $349B Paycheck Protection Program (PPP) has officially run out of funds, meaning the money allocated by the CARES Act primarily for small business relief has been fully allocated. To date, according to news sources, the SBA approved 1,661,397 loans from 4,975 lenders; however, many more would-be borrowers have yet to complete applications. And of those who have been approved for PPP loans, only a fraction has seen funds actually hit their bank accounts due to ongoing internal processing challenges. Bottom line: the PPP, while a lifeline to some, has been a frustration to many. (Read More)

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What to Do If Your New York Business Has Been Deemed Non-Essential

With his issuance of the “New York State on PAUSE” Executive Order 202, which became effective on March 22, Governor Andrew Cuomo suspended all “non-essential” businesses within New York in an attempt to flatten the curve and fight COVID-19. Along with his order came a list of businesses considered “essential” and allowed to continue operation, while enacting certain social distancing guidelines as best possible. Since then, the list of essential businesses has expanded, with the Empire State Development Corporation (ESDC) issuing further guidance toward that end on April 3. (Read More)

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Mind If I Take a Seat: Shareholder vs. Board Votes in Venture Capital Transactions

Seats on a board of directors are, no doubt, coveted. In fact, when investing venture capital into a company through an equity financing, VC investors often negotiate to receive one or more board seats for themselves or their designees. Additionally, these investors frequently require that specified matters not be pursued by the company without board approval (including approval by the VC’s board designees). To a large degree, angling for a board presence and mandating board approval makes sense to the extent doing so grants the VC investors a greater level of control and serves to protect their investment. But to what degree should important business decisions be taken, by default, at the board level? And when might it be a better practice to put certain company actions to a shareholder vote? (Read More)