Apart from the profound human toll COVID-19 has taken, many elements of the economy have, as a result of the pandemic and lockdown, been temporarily “closed for business”. Global supply chains have been disrupted, mergers and acquisitions activity chilled, financing commitments evaporated and investment valuations dropped. While many investors have been anticipating – and amassing…
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The retail industry was already hurting badly in 2019 (it was often referred to as a “retailpocalypse”), leading to bankruptcy filings by Model Sporting Goods, Pier 1 Imports, Barneys New York, and Payless ShoeSource, just to name a few… and that was before the COVID-19 pandemic. No industry is immune from the impact of the…
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Following the implementation of the Paycheck Protection Loan Program for certain small businesses by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), on April 9, 2020 the Board of Governors of the Federal Reserve System announced the terms of two new Main Street Lending Program credit facilities…
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The federal government has taken several direct and indirect measures through legislation and regulation to assist those most vulnerable to the economic effects of the coronavirus pandemic, including small businesses, the workforce, health care providers, and patients. In particular, under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the $349 billion Paycheck…
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On March 30, 2020, DarrowEverett LLP issued a client alert on the new Payroll Protection Loan. On April 2, 2020, the U.S. Small Business Administration (SBA) issued in advance of publication an Interim Final Rule providing additional guidelines and requirements under the Paycheck Protection Loan Program. SBA Interim Final Rule The Interim Final Rule is immediately…
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Expanded Access for Businesses Seeking Streamlined Subchapter 5 Bankruptcy Protection As many are aware, Congress recently enacted the Small Business Reorganization Act (“SBRA”), effective on February 19, 2020, to add a new subchapter to the United States Bankruptcy Code, commonly referred to as Subchapter 5. The SBRA was designed to reduce the cost and expense for…
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Excluded from Gross Income, but No Deduction of Expenses for forgiven Paycheck Protection Loans The hallmark of the Paycheck Protection Loan Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), is that certain payroll costs (other than salaries, wages and tips in excess of $100,000 in annualized pay per employee,…
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These recent weeks have certainly brought unexpected change and disruption into our lives.They have ushered in unprecedented challenges, to be sure, but they have also revealed a palpable and growing spirit of community and solidarity to embrace. We are in this together and change really is the only constant in our lives. DarrowEverett is ready…
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Many industries have been upended by the Coronavirus epidemic and the local, state and national government response. Because of the fundamental role Real Estate plays in our economy and the broad umbrella of activity that falls under the category of “Real Estate Development”, developers, property owners and tenants have been particularly impacted. Landlords, tenants, contractors,…
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Many industries have been upended by the Coronavirus epidemic and the local, state and national government response. Because of the fundamental role Real Estate plays in our economy and the broad umbrella of activity that falls under the category of “Real Estate Development”, developers, property owners and tenants have been particularly impacted. Landlords, tenants, contractors,…
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