Our COVID-19: Client Updates

May 16, 2020 The Paycheck Protection Program (PPP) has provided temporary funding for many businesses of various sizes and across many industries. Once borrowers have received approval and funding (if not sooner), they should focus on maximizing the amount of loan proceeds that will be forgiven. Use of Proceeds Borrowers are permitted to use PPP…

In August of 2019, the President signed into law the Small Business Reorganization Act (“SBRA”).  SBRA created a new Subchapter V of Chapter 11 of the United States Bankruptcy Code effective February 19, 2020.  SBRA is intended to make it easier and less expensive for small businesses to reorganize under Chapter 11.  As enacted, SBRA…

Article effective based on date written: May 12, 2020 For businesses struggling as a result of pandemic-related shutdowns, any form of stimulus may be vital to their continued existence.  When the CARES Act[1] became law, many businesses believed that the employer retention credits authorized by section 2301 would see widespread application.  Unfortunately, those impacted by…

Article effective based on date written: May 11, 2020 For those seeking to return funds from the Paycheck Protection Program (“the PPP”) pursuant to the safe harbor, the deadline is fast approaching: May 14, 2020.  While this issue continues to generate publicity, the fear being generated is perhaps unfair to some returning funds for which…

Article effective based on date written: May 5, 2020 Takeaway:  Although the Internal Revenue Service indicates that expenses resulting in loan forgiveness under the Paycheck Protection Program are not deductible, its interpretation is questionable.  Even if Congress does not legislatively address this issue, businesses may consider deducting these expenses based on the intent of the…

May 4, 2020 Howard County is moving to a virtual hearing platform for zoning hearings via WebEx. The first virtual zoning hearing has been scheduled for May 28th.  March 19, 2020 All milestone and submission deadlines have been extended according to the County Executive’s order. Paper and mylar submissions: Residential walk-thru permits, and all physical…

Article effective based on date written: May 1, 2020 Takeaway:  Recently implemented rules, public statements of government officials, and the return of funds by some should not compel most businesses to change course; however, recipients of funds from the Paycheck Protection Program should collect and retain documentation to support certifications made with their loan applications,…

Distressed Businesses, the Unemployed, and Others Experiencing Financial  Hardship May Greatly Benefit if Action is Taken Article effective based on date written: 4/27/2020 Although the pandemic and related financial downturns have put many individuals and businesses on the brink of financial disaster, this may present an opportunity for those with long-standing tax issues.  For those…

Paycheck Protection Program: Understanding the Rules and Potential Options May Be Required to Maximize Loan Forgiveness – The Paycheck Protection Program (“the PPP”) has, by most accounts, been a great success in providing needed financial assistance to small businesses.  While funding through the PPP is characterized as a “loan,” many business owners view these proceeds as grants due to the loan forgiveness offered by the CARES Act.  Whether the PPP loan has been funded yet or not, businesses should carefully review their financial situation and the requirements of the PPP in order to maximize the amount of loan forgiveness.

The answer to this question will depend upon the language of your policy.  Most business interruption insurance policies, however, will have coverage language and exclusions that will make it unlikely for a COVID-19 claim to be covered. It would be prudent to have your attorney review your policies and assist you in making any appropriate…