House Introduces New Legislation Allowing Startups To Access PPP Funding
On May 8, 2020, Congresswomen Anna Enshoo and Cathy McMorris introduced the Caring for Startup Employees Act of 2020 , a bipartisan piece of legislation aimed at granting more economic assistance to startup companies through the Paycheck Protection Program (PPP). Should this bill become law, it would dramatically increase the number of companies eligible for PPP loans. Under current Small Business Administration (SBA) guidance and regulations—specifically the agency’s “affiliation rules”—many startups are unable to receive PPP funds because they do not have a majority shareholder. The Caring for . . . Read More
New Senate Bill Could Make PPP Expenses Tax Deductible
On May 6, 2020, members of the Senate Finance Committee introduced the Small Business Expenses Protection Act of 2020 (“the Act”), legislation that would allow some small businesses to deduct from their taxes expenses paid with their forgiven Paycheck Protection Program (“PPP”) loan. Should this bill become law, it would greatly modify current regulations surrounding tax-deductible expenses for small businesses. On April 30, 2020, the Internal Revenue Service (“IRS”) issued a notice stating that no tax deduction is allowed for an expense that results in PPP loan forgiveness. . . . Read More
CARES Act and PPP: Important Updates Regarding Loan Forgiveness Calculations and Returns
On May 5, 2020, the Small Business Administration (“SBA”) and U.S. Treasury Department (“Treasury”) revised their FAQ concerning the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Paycheck Protection Program (“PPP”). Of note, this new guidance clarifies PPP loan forgiveness amount calculations and extends the deadline for PPP borrowers to return loan proceeds. According to Question 40 of the FAQ, a PPP loan borrower’s forgiveness amount will not be reduced should the company make a good faith attempt, . . . Read More
$484 Billion Relief Bill Signed Into Law, $310 Billion Allocated to Paycheck Protection Program
H.R. 266 , the Paycheck Protection Program and Health Care Enhancement Act, was signed into law today. Appropriating $484 billion in relief for the COVID-19 outbreak, it provides additional funding for small business loans, healthcare providers, and COVID-19 testing. The Small Business Administration (SBA) has been unable to accept new applications for the Paycheck Protection Program or the COVID-19 related Economic Injury Disaster Loan (EIDL) assistance program (including EIDL Advances) because Coronavirus Aid, Relief, and Economic Security Act funding was exhausted. The . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – April 24, 2020
If you have questions concerning the content below, please visit this link . COVID-19 Client Resource Center: To access resources for businesses navigating the COVID-19 crisis, we invite you to visit PilieroMazza’s “ COVID-19 Client Resource Center .” Please contact covid19@pilieromazza.com for immediate assistance. SMALL BUSINESS PROGRAMS & ADVISORY SERVICES $484 Billion Relief Bill Signed Into Law, $310 Billion Allocated to Paycheck Protection Program, April 24, 2020, Dave Shafer H.R. 266 , the Paycheck Protection Program and Health Care Enhancement Act, was signed into law today. Appropriating $484 . . . Read More
Default Terminations – ASBCA Lacks Jurisdiction Over Excusable Delay, Constructive Change Defenses Not Presented to Contracting Officer for Final Decision
Westlaw Journal Government Contract recently published an article by Meghan Leemon and Lauren Brier titled “Default Terminations – ASBCA Lacks Jurisdiction Over Excusable Delay, Constructive Change Defenses Not Presented to Contracting Officer for Final Decision.” The article covers a decision from the Armed Services Board of Contract Appeals (ASBCA) that highlights the importance for prime contractors to preserve all relevant defenses to termination in advance of an appeal to the Board of Contract Appeals or Court of Federal Claims. To access the full article, please visit this link . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – April 10, 2020
If you have questions concerning the content below, please visit this link . COVID-19 Client Resource Center: To access resources for businesses navigating the COVID-19 crisis, we invite you to visit PilieroMazza’s “ COVID-19 Client Resource Center .” Please contact covid19@pilieromazza.com for immediate assistance. SMALL BUSINESS PROGRAMS & ADVISORY SERVICES CARES Act Guide for Small Business Owners The U.S Senate Committee on Small Business and Entrepreneurship released a guide for major programs and initiatives under the Coronavirus Aid, Relief, and Economic Security (CARES) Act that will . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – April 3, 2020
If you have questions concerning the content below, please visit this link . COVID-19 Client Resource Center: To access resources for businesses navigating the COVID-19 crisis, we invite you to visit PilieroMazza’s “ COVID-19 Client Resource Center .” Please contact covid19@pilieromazza.com for immediate assistance. CLIENT ALERT: DOL Issues Temporary Regulations the Day the FFCRA Became Law, April 2, 2020, Nichole Atallah , Sarah Nash , and Sara Nasseri . [ Read More ] CLIENT ALERT: FFCRA Leave Effective April 1: DOL Issues Additional Guidance, March 31, 2020, Nichole Atallah , Sarah Nash , and Sara Nasseri . [ Read More ] SMALL BUSINESS PROGRAMS . . . Read More
DOL Issues Temporary Regulations the Day the FFCRA Became Law
The Families First Coronavirus Response Act (FFCRA) went into effect on April 1st. That same day, the Department of Labor (DOL) issued temporary regulations to implement the new provisions of the Expanded Paid Sick Leave Act (EPSLA) and the Expanded Family and Medical Leave Act (EFMLA). The much-anticipated regulations generally follow the additional guidance provided by the DOL in the past few weeks. We previously wrote on the FFCRA on March 18, 2020 ( link ), and on the additional guidance . . . Read More
Affiliation in the Context of SBA Loans, Guidance for Venture Capital Investors
In this guidance document published by the National Venture Capital Association (NVCA), “Affiliation in the Context of SBA Loans, Guidance for Venture Capital Investors,” PilieroMazza ’s Kathryn Hickey offers key takeaways for venture capital investors concerned about SBA affiliation rules in the context of SBA loans. To access the full article, please visit this link . Ms. Hickey is Chair of the Firm’s Business & Transactions Group , where she assists clients primarily in general business, mergers and acquisitions, venture capital and private equity investments, and commercial contracting. . . . Read More