If you have been following Legal Bytes, then you know we have been following developments related to the various relief, incentive and stimulus programs being enacted and signed into law in the US (See Congress Provides Additional PPP Flexibility which includes links to many of the prior postings).
After Congressional passage of the legislation earlier last week, over this past July 4th weekend, President Donald Trump signed into law an extension of the application period for the Paycheck Protection Program (PPP) until August 8, 2020 and this morning applications were once again being accepted for the loans. According to the SBA, there is still over $130 billion available in the fund.
We will continue to provide updates as they become available and as always, if you need more information or assistance you can always contact me, Joe Rosenbaum, or the Rimon Law lawyer with whom you regularly work. Stay safe, stay well!
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!
We previously posted information regarding the initial release of information about the Paycheck Protection Program being implemented by the U. S. Small Business Administration (US Chamber of Commerce Issues Coronavirus Small Business Guide and Paycheck Protection Program & Disaster Relief Loan Information Released (Updated)).
If you have been following those developments, yesterday (28 April 2020) the SBA updated the FAQs and you can read and download a copy of the update directly from the SBA’s website Paycheck Protection Program Loans Frequently Asked Questions.
While the FAQ document does not have the force or effect of law or regulation, the guidance is based on the SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules and notes the U.S. government will not challenge any action taken by a lender in reliance upon and conforming to the guidance and any subsequent rulemaking in effect at the time.
Part of the recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act is designed to help small businesses keep workers employed during this pandemic crisis and the consequential stress facing the economy. In fact, the CARES Act has allocated $350 billion to the Paycheck Protection Program, an initiative that will provide loans to small businesses that are 100% guaranteed by the Federal government.
The United States Chamber of Commerce has issued a guide to help small businesses understand who is eligible, in what amounts these loans will be available and what criteria will determine whether the loans will be forgiven. You can read the summary right here: Corona Virus Emergency Loans Small Business Guide & Checklist.
As always, I and all of the legal professionals at Rimon continue to remain available to assist during these challenging times.
The U.S. Internal Revenue Service (IRS) has set up a special Coronavirus Tax Relief section on its website, in order to help taxpayers, businesses and others affected by COVID-19 obtain information regarding their tax and filing obligations, all of which have been affected by the pandemic.
While there is no information as of now regarding details of any stimulus or relief package, there is valuable information describing some temporary adjustments and suspensions of certain compliance programs, details of the Treasury’s extension of the deadlines for filing and federal tax payments to July 15, 2020 and a number of other releases providing tax-related guidance as a result of the COVID-19 outbreak.
IRS will update the information as it becomes available, so check back frequently as developments unfold.
The legal professionals at Rimon are available to help and as always, if we can’t help you – especially in these challenging times – we will assist you in finding someone who can! Stay safe and following the recommendations of your national, state, provincial and local authorities to keep yourself, your family, colleagues and friends healthy and prevent the spread of this infection.
– Dror Futter, Partner
Since the early 2000’s, the National Venture Capital Association has maintained model legal agreements for Series A venture financings. These forms are the templates for most of the Series A financings in the United States and are periodically updated to adjust to changes in the market and the legal/regulatory environment.
The most recent update includes additional provisions for life science investments, shareholder approval rights for ICOs and an option for alternative dispute resolution under the Delaware Rapid Arbitration Act.
Rimon Law partner Dror Futter, a member of the NVCA model forms drafting group, provides an expanded summary of the changes in the most recent update in the following client alert you can read right here: NVCA Updates Its Series A Model Legal Documents.
If you have any questions or want further information, feel free to contact Dror Futter directly and, of course, you can contact me, Joe Rosenbaum or any of the attorneys at Rimon Law with whom you regularly work.