cares act: Can a company with more than 500 employees get a PPP loan? Sometimes YES!
- 04/16/20 09:34 PM
The Paycheck Protection Program (“PPP”) is geared to small business. The Small Business Administration (“SBA”) uses a very specific and complicated definition to determine which businesses can generally qualify for SBA loans. Generally, qualifying business must be a “small business concern” to obtain a loan. The CARES Act adopts SBA terminology and allows businesses that are a “small business concern” as defined by § 3 of the Small Business Act, 15 U.S.C. § 636 and its regulations, and other “business concerns” to obtain PPP loans. Among other requirements, the SBA determines whether a business is a “small business concern” by looking to … (1 comments)
cares act: Can CARES Act loans help a business debtor in bankruptcy?
- 04/07/20 04:31 AM
Over the past week, I’ve been asked whether there is anything in the CARES Act that can facilitate entrance, DIP, or exit financing for a chapter 11 debtor? The short answer is likely not the longer answer is maybe. The Act delegates rule making authority to Treasury and the SBA. Given the short timeframe for the programs to be introduced, guidance has come in the form of circulars, FAQs, and forms. Thus, the guidelines are less than clear and incomplete. The forms that borrowers must complete all prohibit obtaining a paycheck protection loan or EIDL loan if (a) the company is presently … (0 comments)
cares act: Businesses may need to “social distance” for payroll protection loans
- 04/03/20 07:11 AM
For the past several weeks I have been closely following the legislation and rule making concerning the CARES Act, payroll protection loans, and related provisions. One of the most confusing is how attribution/affiliation rules apply to companies that want to take out payroll protection loans. Two interesting issues that that I’ve seen are: Can the owner of an operating business use payroll protection loan proceeds to pay rent (a covered expense) to her affiliate real estate holding company? Can VC-backed start-ups, that would qualify as small businesses if they were stand-alone companies, apply for payroll protection loans? Before attempting to answer … (0 comments)
The Paycheck Protection Program (“PPP”) is geared to small business. The Small Business Administration (“SBA”) uses a very specific and complicated definition to determine which businesses can generally qualify for SBA loans. Generally, qualifying business must be a “small business concern” to obtain a loan. The CARES Act adopts SBA terminology and allows businesses that are a “small business concern” as defined by § 3 of the Small Business Act, 15 U.S.C. § 636 and its regulations, and other “business concerns” to obtain PPP loans.
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