The Paycheck Protection Program (PPP) was established in March 2020 by the U.S. Congress and Government to help small businesses weather the economic fallout caused by the Covid-19 pandemic. After the first two rounds of funding were exhausted in spring ($349 billion) and summer ($320 billion), a new version of PPP has been approved before the end of the year and is now available. Businesses that did not get the loan under the first two rounds will be eligible under...

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Who Needs to Know All parties interested in participating in the PPP. Why It Matters In addition to allocating $284.45 billion in new funding, this package of laws include significant clarifications and modifications to the PPP that are important to borrowers and lenders. On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021, which included the Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act (the Act), the COVID-Related Tax Relief Act of 2020, and the Taxpayer Certainty...

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As part of its leading role in providing global relief to address the COVID-19 crisis, the World Bank has committed significant financing to its member countries to respond to the pandemic and support economic growth. Recognizing the urgent need for these resources, the World Bank is relying on emergency guidelines that relax and expedite its traditional procurement oversight. However, companies interested in bidding in World Bank-financed projects should still expect the World Bank’s standards of conduct to apply, and...

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Key insights If you believe you may be eligible for the next round of PPP, begin preparing now. Take a fresh look at the employee retention credit: it’s been expanded. Consider whether a retroactive capture of WOTC applies to your organization. The newly passed COVID-19 relief bill is packed full of changes to 2020 economic relief legislation, new benefit options, and more. Most of our clients are asking, “Where should I begin?” The five highlights below can help you get started: 1. The Paycheck...

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On 18 December 2020, the OECD published its much-anticipated "Guidance on the transfer pricing implications of the COVID-19 Pandemic."  It is clear that government restrictions and trading difficulties have created an environment in which existing transfer pricing policies will not always be appropriate. The OECD has done well to reach rapid consensus among its members on four key transfer pricing topics, namely: comparability analysis, losses and the allocation of COVID-19-specific costs, government assistance programmes and advance pricing agreements (APAs). It...

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The SBA Administrator can make corporate debtors eligible for Paycheck Protection Program (PPP) loans at any time by notifying the Office of the U.S. Trustee. Suppliers and commercial landlords have reduced preference exposure based on payments made to cover arrearages. Subchapter V debtors can extend the time to perform under commercial leases beyond the initial 60 days. On December 21, 2020, Congress passed a monumental $900 billion pandemic relief package. It includes several changes to the Bankruptcy Code that...

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