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.
On April 24, 2020, the Federal Trade Commission (FTC) announced it had sent warning letters to 10 multi-level marketing companies regarding claims they or their participants (distributors) were making in social media posts and online related to COVID-19.
The claims included supposed health benefits, as well as pitching business opportunities related to the pandemic. You can read the announcement and obtain more detailed information at FTC Sends Warning Letters to Multi-Level Marketers Regarding Health and Earnings Claims They or Their Participants are Making Related to Coronavirus. These new letters come on the heels of letters previously sent to companies about unsupported claims concerning products that can treat or prevent coronavirus (FTC, FDA Send Warning Letters to Seven Companies about Unsupported Claims that Products Can Treat or Prevent Coronavirus).
The FTC and the FDA (Food and Drug Administration) have sent scores of warning letters to companies that may be violating federal law by making deceptive or scientifically unsupported claims about the ability of these products to treat or cure coronavirus. Warning letters have also been sent to voice over Internet protocol (VoIP) service providers and other companies warning against “assisting and facilitating” illegal coronavirus-related telemarketing calls.
You can visit the FTC Coronavirus Warning Letters to Companies web page to see a list of warning letters related to the COVID-19 pandemic. The FTC also keeps track of consumer complaints related the pandemic and updates the data regularly. As of yesterday, there were almost 30,000 COVID-19 related consumer complaints, and although less than 50% of all these complaints report a loss, the estimated fraud losses based on those that do is now well over $20,000,000. For the latest statistics, visit Coronavirus (COVID-19) Consumer Complaint Data, which the FTC updates regularly.
The FTC and the Department of Justice have also issued a joint statement expressing their views on unfair competition and antitrust laws and regulations to make it clear, especially in these extraordinary times of crisis, how firms (including competitors) are permitted to engage in pro-competitive collaboration that does not violate the antitrust laws. You can read the statement at Joint Antitrust Statement Regarding COVID-19.
Rimon lawyers continue to follow these and related developments applicable to the Paycheck Protection Program and other government initiatives available through the SBA and related to the COVID-19 pandemic. For more information or assistance you can contact me, Joe Rosenbaum or any of the Rimon lawyers with whom you regularly work. 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.
Keep each other and our Earth healthy and safe.
For those of you interested and available, on Thursday, April 23rd at 1 PM ET, Joe Rosenbaum, NY Partner at Rimon Law and chair of Rimon’s Global Alliance will be conducting a one hour seminar entitled Crisis Management at the Intersection of Marketing, Privacy, Security and Reputation touching on some of the current issues in marketing, privacy, public relations, cybersecurity & reputation management arising from the COVID-19 pandemic.
While the issues raised may well apply in many crisis situations, now, more than ever, as increased numbers of people are working, schooling and playing at home or at other remote locations, the value of online and mobile advertising and promotions has increased substantially. At the same time, the amounts of information being made available by people scrambling for information, trying to keep up with breaking news, and signing up for online, digital services and information, present legal challenges for compliance with both old and newly enacted privacy and data protection regulation. Not coincidentally, online and mobile scammers are seeking to capitalize on the growing number of inexperienced web surfing consumers and cyber criminals are using the opportunity to capture valuable personally identifiable as a result of lax or relaxed security measures. The inaccurate perception that strong security may be an obstacle to utility or speed and simply the increased number of inexperienced users accessing the Internet, provide fertile ground for exploitation. What you should know? What you can do? What you should be telling your clients and employees? What can we all do to help?
To register simply go to REGISTER: Crisis Management at the Intersection of Marketing, Privacy, Security and Reputation
The course is open to lawyers and non-lawyers, is approved for New York bar members who are eligible for 1 CLE credit per course through NY’s Approved Jurisdiction Policy and approved by the California State Bar for 1 hour of CLE credit. Most other states recognize CA accredited courses and if you would like credit in any other state, please check your local state bar’s regulations.
“The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty and we must rise with the occasion. As our case is new, we must think anew and act anew. We must disenthrall ourselves, and then we shall save our country.”
“Only one form of contagion travels faster than a virus. And that’s fear.”
The strain of of the corona virus pandemic is not only a threat to our health and safety, but it is also creating economic hardship for people, businesses and entire industries.
As the ability to perform obligations under existing contracts are being strained, whether for supplies, paying rent or making payroll, parties to agreements are doing more than exercising self-help or looking to the government for assistance. They are also calling their lawyers to find out if anything in their contracts will allow them to legally extricate themselves from the obligations that may have seemed routine only a few months ago.
One of the primary areas of contractual inquiry has focused on the force majeure or excusable delay clause that is ‘boilerplate’ in many agreements. Force majeure literally translated from the French means ‘superior force’ and refers to situations in which some external intervening event has impaired a party’s ability to perform its obligations under the contract and allows that party’s performance to be excused.
For some insight on how effective, applicable and even understandable these so-called ‘standard clauses’ are, you can take a look at my Insight Note: Managing Contract Risks & Remedies in a Time of Coronavirus.
You might also check out a similar Insight Note from my partner and colleague, Juan Zuniga entitled: Memo on Force Majeure and COVID-19 which goes into great detail as to how the law in California might be interpreted in light of the current health crisis.
In fact, you can find all of the recent Insights from Rimon Law professionals on our Insights & Analysis page and once again a reminder that Rimon lawyers and legal professionals are always available to help.