Following up on our previous posts (Paycheck Protection Program & Disaster Relief Loan Information Released (Updated) and Paycheck Protection Program (Updated FAQs)) this past Friday (May 15th), in consultation with the Department of the Treasury, the Small Business Administration (SBA) released the Paycheck Protection Program (PPP) Loan Forgiveness Application with detailed instructions explaining how to apply for forgiveness of PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The announcement also states the SBA will also issue regulations and guidance to further assist borrowers as they complete their applications, and provide lenders with guidance on their responsibilities. Here are copies of the Press Release, as well as the PPP Loan Forgiveness Application with detailed instructions, you can read and download directly.
We will post further information as it becomes available.
As always, if you need more information or assistance you can contact me, Joe Rosenbaum, or any of the lawyers at Rimon with whom you regularly work. Stay safe!
On April 30th, the Federal Reserve Board announced an expansion of its Main Street Lending Program to help small and medium-sized businesses. The expansion adds additional loan options for businesses and increases the maximum size of businesses eligible for support under the program. Although no start date for the expanded program has been announced yet, highlights of the expansion are:
- Creating a new loan option, with increased risk sharing for borrowers with greater leverage;
- Lowering certain loan minimums to $500,000; and
- Expanding the pool of eligible businesses.
The Federal Reserve Board has published FAQs related to the program and you can read and download a copy at Main Street Lending Program – Frequently Asked Questions.
The US Chamber of Commerce has also published a guide to the program and you can read and download a copy at USCC Guide to Main Street Lending Program.
Once these expanded options are launched, there will be a total of three loan options—referred to as new, priority, and expanded and you can read more information about each of these loan options here:
Main Street New Loan Facility (MSNLF)
Main Street Priority Loan Facility (MSPLF)
Main Street Expanded Loan Facility (MSELF)
While there are different criteria and parameters for each of these loan options, lenders will be able to apply industry-specific expertise and underwriting standards to measure a borrower’s income and under the new program, businesses with up to 15,000 employees or up to $5 billion in annual revenue are now eligible.
As always, if you want more information or need assistance feel free to contact me Joe Rosenbaum, or any of the Rimon Law lawyers with whom you regularly work. Stay well. Stay safe!
Today is May 5th – Cinco de Mayo!
Many people mistakenly believe Cinco de Mayo is Mexican Independence Day, but Día de la Independencia in Mexico is commemorated on September 16th.
In fact, Cinco de Mayo commemorates the Battle of Puebla de Los Angeles which took place on May 5, 1862, in which defending Mexican forces, led by General Ignacio Zaragoza, defeated the invading French army of Napoleon III. Puebla de Los Angeles was subsequently renamed for General Zaragoza who died of typhoid fever months after his victory.
Cinco de Mayo is a relatively minor holiday in Mexico, but is celebrated with much more fanfare in the United States and has evolved into a commemoration of Mexican culture and heritage, particularly in areas with large Mexican-American populations.