Today, #SBA issued regulations stating that “corporate groups” may not receive more than $20M total in #PPP loans. This new “corporate group” requirement is analyzed based on SBA’s #affiliation rules — and even applies to businesses with affiliation waivers under The CARES Act.
This new requirement applies to any #PPP loan not-yet disbursed as of April 30. This suggests that SBA will now consider an applicant’s #affiliations — and will likely review affiliation during the #PPPaudit process for forgiveness.
See, generally, 85 Fed. Reg. 26324.
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Like many #smallbiz attorneys and advocates, I’m spending most of tonight and tomorrow reading over the Democrats newly-released #COVID19#stimulus package. As I review, I’ll share some insights and discoveries. Stay tuned!
Twice this week, Sec. Mnuchin and @federalreserve Chair Powell have expressed the need for additional aid for #smallbiz, including a second disbrusement of #PPP loans — even suggesting targeted aid for restaurants, hotels, and other specific industries . . .
The next #COVID19 stimulus will likely have additional aid for #smallbiz, but with additional segmentation and requirements.
- Biz with less than 20 ppl
- Restaurants & Hotels (i.e. Sector72)
- #MinorityOwned & Rural Biz
Each will likely have a specific carve out in the bill . .
Specific to @federalreserve’s #MainStreetLending programs, we may see modifications on eligibility, personal guarantees, and lender requirements to help unclog this funding channel for #smallbiz and “larger” #SMBs . . .
Like every business, Washington’s #NFL team had to consider existing #trademarks when #rebranding. According to this story, the new name is being held up by a trademark dispute (meaning someone likely holds the trademark in their industry already). . . apple.news/AGRfYxT-LTSK8J…
The Washington #RedTails very well might the new name #Snyder and his #NFL are seeking, as someone in Virginia already holds a very similar #trademark
Universities and colleges across the US should implement procedures immediately to allow international students to attend classes in person. Permit international students to attend class in person on campus on a limited basis to avoid #ICE’s “fully remote” deportation rule.
Professors may still teach remotely, and US students may still attend remotely, avoiding large student gatherings in response to #COVID. International student likely don’t need to attend every class in person, meaning in-person gatherings would still be less frequent.
Concurrently, a challenge to ICE’s rule under the #APA and related statute must be undertaken by interested parties to abolish this rule and protect these student populations.
The Forgiveness Application suggests that borrowers may be subject to changes in #PPP regulations issued after the borrower applied for the PPP loan.
According to the #Forgiveness application, “[t]he Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. . . .
On 5/13, #SBA provided some relief for #smallbiz concerned with possible SBA audits, particularly related to “economic need” certifications and the “good faith” safe harbor. But, #PPP loan recipients did not receive a full reprieve from all challenges. kaneesq.com/insights/ppp-l…
Despite the grace for “economic need” certifications, #SBA audits and post-hoc reviews still present significant risks for borrowers and even lenders, regardless of the #PPP loan amount.
Borrowers of less than $2 million should still prepare for potential #SBA audits and post-hoc reviews, particularly if they apply for #PPP loan #forgiveness. These reviews will likely require borrowers to substaniate size, #affiliations, #NAICS code, and even #creditworthiness.