In May, the IRS issued Notice 2020-32, providing that a taxpayer that receives a loan through the Paycheck Protection Program (“PPP”) is not permitted to deduct expenses that are normally deductible under the Code to the...more
Keep your business in the know during the COVID-19 outbreak.
With information concerning the Coronavirus (COVID-19) rapidly evolving, DRM is committed to providing you relevant and timely guidance on how to navigate this...more
While many who have accepted PPP loans now consider the forgiveness aspects and process, be mindful of federal enforcement. To date, the Justice Department has filed 36 PPP fraud cases, charging about 51 defendants....more
8/25/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
False Statements ,
FBI ,
Fraud ,
IRS ,
Paycheck Protection Program (PPP) ,
SBA
The SBA will begin accepting PPP forgiveness applications from lenders on August 10, subject to extension if any new legislative amendments to the forgiveness process are adopted....more
A new bill is now pending in the Senate which enhances lender protections and facilitates forgiveness for those PPP borrowers receiving PPP loans of less than $150,000. Proponents of the legislation have explained that the...more
RECENT DEVELOPMENTS -
July 20, 2020: A new bill is now pending in the Senate which enhances lender protections and facilitates forgiveness for those PPP borrowers receiving PPP loans of less than $150,000. Proponents of...more
The U.S. Small Business Administration (“SBA”) has just issued a new interim final rule that addresses a number of issues related to the Paycheck Protection Program (“PPP”) created by the Coronavirus Aid, Relief, and Economic...more
When the Paycheck Protection Program (“PPP”) first was launched, the SBA portal was available to small businesses that could evidence loan application amounts based upon documented payrolls. ...more
There is a significant likelihood that M&A transactions in the next year may involve PPP loans. Here are several deal components that should be considered in light of PPP.
...more
On June 16, 2020, the Small Business Administration (“SBA”) released a revised loan forgiveness application for the Paycheck Protection Program (“PPP”), reflecting changes to the PPP made by the Paycheck Protection...more
On June 10, 2020, the Small Business Administration (“SBA”) released Business Loan Program Temporary Changes; Paycheck Protection Program – Revisions to First Interim Final Rule....more
6/17/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Economic Injury Disaster Loans ,
Federal Loans ,
Financial Stimulus ,
Loan Forgiveness ,
Paycheck Protection Program (PPP) ,
Paycheck Protection Program Flexibility Act of 2020 (PPPFA) ,
Relief Measures ,
SBA ,
SBA Lending Programs
Significantly, the statement confirms that partial forgiveness will remain available even if a borrower does not spend at least 60% of its forgiveness amount on payroll costs. ...more
6/9/2020
/ CARES Act ,
Federal Loans ,
Joint Statements ,
Loan Forgiveness ,
Paycheck Protection Program (PPP) ,
Paycheck Protection Program Flexibility Act of 2020 (PPPFA) ,
Payroll Taxes ,
Safe Harbors ,
SBA ,
SBA Lending Programs ,
Secretary of the Treasury
While passage seems certain, nothing about the Paycheck Protection Program (“PPP”), a small business provision of the larger CARES Act, has been certain. There seems to be no Congressional doubt that the PPP’s provisions...more
Earlier today, voting by proxy, the House voted 417-1 to approve legislation known as the Paycheck Protection Program Flexibility Act, giving small business owners greater flexibility to spend their PPP loan proceeds and...more
For businesses that received a loan through the Paycheck Protection Program (PPP), the rules are still being refined, regulations continue to evolve and new guidance continues to be published. Despite the rapidly evolving...more
5/28/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Documentation ,
Loan Forgiveness ,
Paycheck Protection Program (PPP) ,
Payroll Expenses ,
Relief Measures ,
Small Business ,
Small Business Loans ,
Tax Deductions ,
Wage and Hour
While much of the rules duplicate what is found in the PPP loan forgiveness application and instructions, there are some significant new items of guidance. The first of these Interim Final Rules addresses the requirements and...more
RECENT DEVELOPMENTS -
May 20, 2020: Vermont Governor Phil Scott announced a $400 million economic relief and recovery package for Vermont. The proposed package is funded by the $1.25 billion Vermont received from Federal...more
5/22/2020
/ CARES Act ,
Economic Injury Disaster Loans ,
Eviction ,
Federal Funding ,
Financial Assistance Policies ,
Foreclosure ,
Government Assistance ,
Governor Scott ,
Relief Measures ,
Rental Assistance Programs ,
State Grants
The Small Business Administration (“SBA”) has released the much-anticipated application and instructions for how Paycheck Protection Program (“PPP”) borrowers can seek loan forgiveness. A link to the application and...more
RECENT DEVELOPMENTS -
May 15, 2020: Vermont Governor Phil Scott extended the Stay Home, Stay Safe order until June 15, pursuant to Addendum 14 to Executive Order 01-20 (“Be Smart, Stay Safe”). Governor Scott encouraged...more
5/16/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Executive Orders ,
Financial Assistance Policies ,
Governor Scott ,
Governor Sununu ,
Hotels ,
Main Street Lending Programs ,
Personal Protective Equipment ,
Re-Opening Guidelines ,
Remote Working ,
Retailers ,
Shelter-In-Place ,
Travel Restrictions
The first PPP loans now near the end of their eligible 8 week period: significant questions persist and pressure is mounting on the SBA and Treasury to implement program revisions. ...more
CARES Act: Paycheck Protection Program Loans -
In guidance issued in late April, after many Paycheck Protection Program (“PPP”) loans had already been funded and the proceeds were being spent, the SBA said borrowers needed...more
5/14/2020
/ CARES Act ,
Certification Requirements ,
Coronavirus/COVID-19 ,
Eligibility ,
Good Faith ,
New Guidance ,
Paycheck Protection Program (PPP) ,
Safe Harbors ,
SBA ,
Small Business Loans ,
Time Extensions
SBA Extends Certification Safe Harbor Repayment Date By One Week -
On May 5, 2020, the Small Business Administration (“SBA”) newly issued limited guidance on the Paycheck Protection Program (“PPP”) extending the safe...more
A rule change released by the Treasury Department will allow seasonal businesses to choose a different 12-week expense period when applying for a Paycheck Protection Program (“PPP”) loan under the CARES Act — a period that...more
Disbursement of PPP Loan Proceeds -
Questions persist regarding how loans under the Paycheck Protection Program (“PPP”) are to be funded by lenders. Specifically, some Borrowers have sought multiple draws hoping to achieve...more
SBA issues interim final rule -
Confronted with loud dissension from the lending community on the eve of the program’s launch, including an email notice from the largest U.S. bank, JP Morgan Chase to its customers on April...more