Unsure Whether You’ll Lose Tax Deductions for a Forgiven PPP Loan? Wait Until 2021 to File for Forgiveness
As it hashes out the details of the next COVID-19 relief package, Congress is facing pressure from business groups to allow businesses to write off expenses covered by forgiven Paycheck Protection Program (PPP) loans. The groups explain that, without write offs, “millions of small businesses . . . will face a surprising, and, in many cases, insurmountable tax bill next year.” We have received questions about the quagmire of regulations covering tax treatment for businesses when PPP loan balances are . . . Read More
Hiring? Recent Amendments to Equal Pay for Equal Work Act Impose New Limits on Employers
Almost thirty years ago, Maryland’s General Assembly passed the Equal Pay for Equal Work Act (Act), imposing an obligation on Maryland employers to pay employees equal amounts for the same work, regardless of the employee’s sex. Effective October 1, 2020, the General Assembly amended the Act, imposing new restrictions on employers both during and after the hiring process. Companies employing workers in Maryland should review and adjust their interviewing and hiring policies to comply with the new law and avoid . . . Read More
Got Millennials? Two New Trends for Private Company Boards of Directors
Recent trends in corporate governance best practices for privately held companies show a shift away from the previous view of Boards of Directors solely as a formality. Increasingly, private companies are realizing the value of boards as a powerful strategic tool to achieve a more cohesive, efficient, and valuable company. Drawing from governance and reporting requirements for public companies under the Sarbanes-Oxley Act of 2002, private companies are creating their own governance structures that mirror those of publicly traded companies, . . . Read More
Defense Production Act Use Under the Biden Administration: What a Stronger Pandemic Response Means for Government Contractors
The Biden Administration plans to adopt a more forceful approach to the COVID-19 pandemic, which will likely include use of the Defense Production Act of 1950 (DPA). As we discussed last April, the DPA authorizes the U.S. government to compel prioritized sales and direct industrial production. For government contractors that receive orders issued under the DPA, operations and contractual obligations can be disrupted, so it is critical to know your rights and obligations under the statute. The DPA authorizes the . . . Read More
Errors to Avoid When Moving State Litigation to Federal Court
Depending on the claims, parties, and preferences, there are multiple forums where litigants can choose to file suit. The majority of cases start in state courts, as they are courts of general jurisdiction. However, for defendants, moving a state court case to a federal court offers certain tactical benefits. Before moving your state court case to a federal court, know that federal courts can only hear cases that have at least one claim arising under federal law or disputes between . . . Read More
Healthcare Blog Series: “Safe Harbor” Exceptions, Common Infractions, and Legislative Updates to the Anti-Kickback Statute and Stark Law
***This is the second installment in a blog series examining the regulatory environment and key concerns for persons or businesses operating in the healthcare industry.*** The first installment of this series introduced the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law), two of the most well-known anti-fraud and -abuse statutes in the healthcare industry. It examined their main differences and respective effects on business relationships and transactions for government contractors and commercial businesses operating in the healthcare sector. This installment . . . Read More
Executive Order on Combating Race and Sex Stereotyping: 5 Things Contractors Should Do Now
The Trump administration issued Executive Order (EO) 13950 on September 22, 2020. The order prohibits federal contractors, federal agencies and certain federal grant recipients, as well as the military, from using workplace training that “inculcates in its employees any form of race or sex stereotyping or any form of race or sex scapegoating.” There are many uncertainties surrounding EO 13950, including whether it will survive legal challenges and a potential change in presidential administration. This blog discusses measures that contractors . . . Read More
SBIR Funding Proposals Due to NIH by January 5, 2021: 5 Tips for Your Submission
The Small Business Innovative Research (SBIR) program provides grant or contract funding to small businesses seeking to commercialize innovative technologies. With $3.2 billion allotted to SBIR each year, there are twelve different agencies that have set aside SBIR funding. One agency is Health and Human Services which provides funding through the National Institutes of Health (NIH). NIH has three grant funding proposal deadlines a year. The next deadline is January 5, 2021. On the NIH/SBIR website , NIH states that the electronic . . . Read More
Protecting Your Company Against Revenue Clawbacks: Preference Actions (Part 1 of 3)
A customer goes bankrupt and then they (or a trustee) demand you return money you were already paid for services or goods duly rendered. In this three-part series, we discuss strategies to protect your company against these revenue “clawbacks,” and how to implement these strategies before and after a customer’s bankruptcy filing. In this blog, we discuss the definition of preferences and the policy purpose of preference actions. In the second, we discuss specific actionable items to take to limit . . . Read More
SBA Releases Loan Necessity Questionnaire for PPP Borrowers
On October 26, 2020, the Small Business Administration (SBA) issued a notice in the Federal Register that, among other updates, announced two new forms, 3509 and 3510 (the Forms), related to the Paycheck Protection Program (PPP). Form 3509 is for for-profit businesses, while 3510 applies only to non-profit entities. These Forms will be sent by PPP lenders only to PPP borrowers who received a principal loan amount of $2 million or more, and borrowers will have ten days to complete it. According to . . . Read More