Treasury and SBA to Make Changes Regarding Enactment of PPP Flexibility Act
On May 28, 2020, we wrote about the Paycheck Protection Program Flexibility Act (the Act), a new piece of legislation introduced in the House of Representatives. The Act’s intended purpose was to give employers more latitude regarding the use of their Paycheck Protection Program (PPP) loans while also increasing loan forgiveness in order to stimulate the economy. Since then, the Senate has passed the Act and President Trump signed it into law . On June 8, 2020, U.S. Department of the Treasury . . . Read More
Congress Approves Significant Changes to SBA’s Paycheck Protection Program
As we reported in our previous alert , the bipartisan bill the Paycheck Protection Program Flexibility Act of 2020 , was passed on May 28, 2020 by the House of Representatives. Last night, the Senate passed the bill, which now heads to President Trump for his signature. If signed into law by the President, the bill will make significant changes to SBA’s Paycheck Protection Program, including: Extend the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks or until December . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – May 29, 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 [email protected] for immediate assistance. LABOR & EMPLOYMENT LAW Creating a New Normal: 5 Steps for Employers Preparing a Returning Workforce in a COVID-19 Environment, May 21, 2020, Sara Nasseri As government authorities slowly begin the reopening process, employers are now preparing to reopen facilities and return employees to their worksites. Undoubtedly, with . . . Read More
The Paycheck Protection Program Loan Forgiveness Application: Cracking the Code and Deciphering the Confusion
As noted in our previous alert , SBA recently released its long-awaited PPP Loan Forgiveness Application. Unfortunately, the Forgiveness Application is difficult to understand and complete. To help crack the code, we have put together the following analysis with our review of the application, SBA’s newly released guidance as to the loan terms, and key issues in the application, as well as input from our accounting partners. 1. Necessary Documents Before you fill out your Forgiveness Application, you will need to have . . . Read More
House Passes Legislation Modifying Existing PPP Regulations
On May 28, 2020, the U.S. House of Representatives passed the Paycheck Protection Program Flexibility Act of 2020 (the Act), new legislation meant to provide additional assistance to small businesses and loosen regulations related to the Paycheck Protection Program (PPP). Should this bill become law, it would make major adjustments to the PPP. The Act makes a few notable changes to PPP’s current loan forgiveness guidelines by: extending the period for which a PPP Loan may be obtained to December 31, 2020; increasing the length of time . . . Read More
DOD Issues New CARES Act, Section 3610 Guidance
Guidance from the Department of Defense (DOD) has finally been issued related to Section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allowed for payments to federal contractors to keep non-working employees at the ready to return to work when required to do so. The new guidance can be found here . As we noted in a previous blog , the CARES Act allows contracting officers to pay contractors at the “minimum applicable billing rates” for any employees . . . Read More
SBA Issues Long-Awaited PPP Loan Forgiveness Application
SBA recently issued its 11-page Paycheck Protection Program Loan Forgiveness Application, linked here . The application walks borrowers through a step-by-step process to determine loan forgiveness amounts based upon the information the borrower enters. It is of note that the application does require borrowers to provide documentation to support the payroll and non-payroll costs paid using PPP Loan funds. This includes the following information to prove the funds were properly spent on covered liabilities incurred, or which became due, during the 8-week period following . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – May 15, 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 [email protected] for immediate assistance. CLIENT ALERT: SBA, Treasury Issue New Guidance Concerning Good-Faith Certification on the Necessity of Loan Request, May 13, 2020, Cy Alba , Kathryn L. Hickey, and Jon Williams . [ Read More ] CLIENT ALERT: SBA Implements WOSB / EDWOSB Certification Requirement and Revises Economic Disadvantage Criteria for . . . Read More
SBA, Treasury Issue New Guidance Concerning Good-Faith Certification on the Necessity of Their Loan Request
On May 13, 2020, the Small Business Administration (“SBA”) and Treasury Department (“Treasury”) released new guidance concerning good-faith certification for Paycheck Protection Program (“PPP”) loan requests. This new guidance clarifies that businesses seeking a PPP loan of less than $2 million will have made their request in good faith unless proven otherwise. SBA and Treasury released this guidance because they believe that borrowers within this safe harbor threshold do not have as much access to other sources of funds that larger loan . . . Read More
Social Engineering Fraud: 4 Steps Every Company Needs to Take Right Now
GovCon Co., a successful government contractor, receives an email from the billing or accounting representative of a trusted vendor, subcontractor, or teaming partner asking for payment of an outstanding invoice stating, “Please note our new bank account information in your system for any current and future wire transfers.” GovCon Co. wires the money to this trusted business partner, believing it has satisfied its payment obligations. A few weeks later, the business partner calls and asks why its latest invoice has . . . Read More