Last August, PilieroMazzareported that Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, announced that SBA will be suspending the bona fide place of business requirement for 8(a) construction contracts, effective immediately. While the Small Business Act requires that, to the “maximum extent practicable, construction subcontracts awarded by the Administration pursuant to this subsection shall be awarded within the county or state where the work is to be performed,” in light of the COVID-19 pandemic, it . . . Read More
As everyone who has been tracking the COVID-19 relief programs since 2020 knows, at the outset there was massive confusion about the programs’ requirements as well as fear that funding could run out before businesses with uncertain futures could secure assistance. Now, two years later, we have heard from numerous clients who have received notice that the Small Business Administration (SBA) intends to audit the Paycheck Protection Program (PPP) Loan or Economic Injury Disaster Loan (EIDL) applications, and even of . . . Read More
Since the onset of the pandemic, many states and localities have passed COVID-19 supplemental paid sick leave laws requiring employers to provide leave to employees for COVID-19-related reasons. California and Colorado have gone beyond many other states by adding to the required amount of sick time. These laws present unique administrative compliance challenges and financial burdens on employers who must prepare for employees’ additional paid COVID-19-related absences. Even employers with no employees in California and Colorado should be mindful, however, . . . Read More
The Small Business Administration’s HUBZone office will soon end the principal office flexibility it introduced during the COVID-19 pandemic. Starting April 1, 2022, firms will no longer be able to count employees who spend most of their time working at home as a principal office employee. HUBZone firms need to be mindful of this as they prepare for their 2022 recertification and manage their HUBZone eligibility going forward. Below, we review the changes announced by SBA and offer our recommendations for dealing . . . Read More
On February 1, 2022, the U.S. Department of Justice (DOJ) announced that it had recovered more than $5.6 billion in Fiscal Year (FY) 2021 settlements and judgments from civil cases involving fraud and the False Claims Act (FCA). This total represents the second-largest government haul for such matters ever and the largest recovery since FY 2014. The over $5.6 billion also far outpaces DOJ’s approximately $2.25 billion in FY 2020 recoveries. The announcement showcases DOJ’s heightened focus on fraud in government . . . Read More
Unfortunately, the PPP Loan fall-out is far from over. As we noted in the last blog on PPP issues , we are seeing a number of PPP Forgiveness denials for a number of different reasons, and, along with that, we are seeing the first audits and investigations as well. Specifically, companies that already received forgiveness for loans over $2M are being audited and investigated by SBA on a rolling basis. As part of that, SBA is asking for additional supporting documentation for the amounts claimed, . . . Read More
As discussed in PilieroMazza ’s previous alert , the Small Business Administration (SBA) released its Paycheck Protection Program (PPP) Loan Forgiveness application way back in May of 2020. Since then, PPP forgiveness continues to cause confusion among businesses, especially federal contractors. Since the release of the original forgiveness application, most PPP borrowers eligible for loan forgiveness have submitted for forgiveness and, most of those, have actually already received forgiveness as well. Unfortunately, we have started to recently see and uptick in loan . . . Read More
