Archive for the ‘Business and Corporate Law’ Category

COVID-19 Update: EIDL and Advance Program Reopened to All Eligible Applicants

access_time Posted on: June 16th, 2020

To meet the needs of small businesses and non-profits, the U.S. Small Business Administration (SBA) today reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible small businesses and nonprofits experiencing economic impacts due to COVID-19. SBA’s EIDL program provides low interest, long-term assistance for small businesses or non-profit organizations.  These loans help alleviate temporary loss of revenue and can be used to fund expenses, pay debt, and cover payroll and inventory.  The EIDL Advance offers up to $10,000 ($1,000 per employee) of emergency relief to businesses experiencing temporary difficulties, and these emergency funds do not need to be… read more »

COVID-19 Update: $225 Million Grant Program for Small Businesses Impacted by COVID-19

access_time Posted on: June 10th, 2020

Governor Tom Wolf announced a $225 million Pennsylvania grant program to aid the smallest and most vulnerable businesses impacted by COVID-19 and the business closure order. The state has shifted its focus towards reopening the commonwealth and is offering assistance to those businesses that were hurt by the pandemic and the resulting economic downturn. When Governor Wolf announced the new program, he said. “This new program will provide direct support to impacted businesses to cover operating expenses during the shutdown and the transition to reopening.” The funds can be accessed through three programs: This program provides relief for small businesses… read more »

COVID-19 Update: President Signs Paycheck Protection Plan Flexibility Act!

access_time Posted on: June 10th, 2020

President Trump signed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) .  This bill modifies several provisions regarding the forgiveness of loans to ease usage restrictions and increase the time businesses are able to utilize PPP funds. Major provisions of the bill include:   An extended forgiveness period, which gives businesses the option to extend the covered period from the original eight weeks to twenty four weeks beginning on the date of origination of a covered loan to December 31, 2020 (twenty-four weeks). An extension of the Jun 30th safe harbor for rehiring employees. A reduced payroll spending requirement from 75% to 60%. An extended… read more »

COVID-19 Update: PPP Loan Forgiveness Application Released

access_time Posted on: May 20th, 2020

The much anticipated Paycheck Protection Program (PPP) Loan Forgiveness Application was released by the U.S. Small Business Administration with input from the U.S. Department of Treasury. The PPP was part of the CARES Act and created to support eligible small businesses with forgivable loans to keep Americans working during the COVID-19 pandemic.  Businesses can seek forgiveness at the end of an eight-week covered period that began with the disbursement of their PPP loan. To apply for forgiveness, the PPP loan borrower must complete the application and submit it to the lender that is servicing their loan.  The application includes the following… read more »

COVID-19 Update: SBA Offers PPP Guidance and Answers Questions

access_time Posted on: May 15th, 2020

The Small Business Administration (SBA), together with the Department of the Treasury, continue to offer additional guidance regarding the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The guidance is offered in a Frequently Asked Questions format (see link below). Paycheck Protection Program Loans FAQs This resource is reliable since it contains SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules (see link below). The U.S. government will not challenge lender actions that conform to the PPP guidance found on… read more »

COVID-19 Update: Qualified Disaster Relief Payments

access_time Posted on: May 5th, 2020

COVID-19 Update: Qualified Disaster Relief Payments Employers may pay or reimburse employees for necessary or reasonable expenses incurred as a result of the COVID-19 pandemic. These disaster relief payments can be made tax-free. This article will provide information on taxation, amount, use, and substantiation of these payments. Typically, employers are taxed for all money that they give to their employees; however, the Internal Revenue Code (Section 139) specifies an exception for “qualified disaster relief payments” paid when there is a federally declared disaster. The COVID-19 pandemic officially qualified when the President declared a “national emergency” on March 13, 2020. Disaster… read more »

COVID-19 Update: The SBA to Resume Accepting PPP Loan Applications

access_time Posted on: April 27th, 2020

Earlier this month, the Small Business Administration’s Paycheck Protection Program (PPP) offered the first round of relief to small businesses under 500 employees by providing needed capital to cover payroll, utilities, rent, insurance, and loan payments (see PPP program description below). For businesses unable to take advantage of these loans in the first round, there is another opportunity! Payroll Protection Program. The SBA’s Payroll Protection Program (PPP) is designed to help businesses maintain their workforce by enabling small businesses to cover payroll and other expenses for eight weeks during the COVID-19 crisis. The loans cover up to $10 million and may… read more »

COVID-19 Update: NEW Small Business Grant Program ($5,000 Grants)

access_time Posted on: April 18th, 2020

COVID-19 Update: Save Small Business Fund A new small business grant program offering $5,000 grants has just been announced by the U.S. Chamber of Commerce Foundation. The name of the grant program is the Save Small Business Fund. The application for a $5,000 grant goes live at 3 PM on Monday, April 20th on the website: www.savesmallbusiness.com. All that is needed to complete the application is the company’s W-9 form. The grant application is short and takes approximately 10 minutes to fill out. Eligibility Criteria: 1) To be eligible, the business must have between 3 and 20 employees. (This includes owners… read more »

COVID-19 Update: Main Street Lending Program

access_time Posted on: April 18th, 2020

COVID-19 Update: Main Street Lending Program The Federal Reserve has established the Main Street Lending Program to provide an additional $2.3 trillion in loans to support small and mid-size businesses. Loans in this program may be in addition to loans granted through the Paycheck Protection Program (although these loans are not forgivable). To qualify, a business must have no more than 10,000 employees and a 2019 annual revenue that does not exceed $2.5 billion. The business must also be created and have significant operations in the United States. A loan through this program will have the following terms: Minimum loan… read more »

COVID-19 Update: Your Business May Be Eligible for Federal Loans

access_time Posted on: April 9th, 2020

COVID-19 Update: Your Business May Be Eligible for Federal Loans CGA Law Firm has created a COVID-19 Business Resource Portal on the CGA website with consistently updated information on government loan offerings. The site has easy-to-read charts, articles on specific topics, answers to the most frequently asked questions, and links to targeted loan applications. Follow the links below to learn more about loans that can bring relief to your business. For small businesses (under 500 employees) in need of capital to cover payroll, utilities, rent, insurance, and loan payments:  Paycheck Protection Program. The SBA’s Paycheck Protection Program (PPP) is enabling small… read more »