April 28, 2020 | The Congress passed the Paycheck Protection Program and Health Care Enhancement Act, sometimes known as “Stimulus 3.5.” Here are highlights of this law’s impact on the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) loans: • More money. The law adds $310 billion in additional guaranty authority to SBA. Based on SBA’s previous loan approvals of 1.6 million PPP loans, this should allow approval of an additional 1.5 million PPP loans. • More lenders. In addition to regulated banks, the bill...

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April 24, 2020 | All of us have spent the last several weeks focused on the health and well-being of our teams and companies, and, in some cases, even survival. Now, the industry stands at an unparalleled juncture. Retail is facing more change, uncertainty, risk, and—if you can allow yourself to imagine it—reward than it has in memorable history. There are innumerable predictions in the market about when the shelter-in-place recommendations will end and how the consumer is likely to respond....

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April 27, 2020 | Although we all hope for a quick return to stability, the current environment raises the possibility of an increase in down-round financings—private company financings in which the company has a reduced valuation from its prior financing round. In recent weeks, we have observed pressure on valuations and the emergence of more onerous, less company-friendly terms in several, though certainly not all, financing rounds. Down rounds raise a number of delicate and important issues for companies and...

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The President signed a new Coronavirus stimulus package that adds $484 billion more in relief for small businesses, hospitals and medical testing. Included in the package is an additional $310 billion for the Paycheck Protection Program (PPP), which ran out of small business loan funds on April 16. $60 billion of these funds will be earmarked for small banks and credit unions in an effort to reach small underserved businesses that do not have established banking relationships. The package also allocates $60 billion for the Economic Injury Disaster Loans (EIDL) and...

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April 23, 2020 | On April 22, 2020, the White House issued a Proclamation Suspending Entry of Immigrants Who Present Risk to the U.S. Labor Market During the Economic Recovery Following the COVID-19 Outbreak, which bars certain foreign nationals from entering the United States as immigrants unless they have alternative travel documents. The proclamation has an effective date of April 23, 2020 (11:59 p.m.). The suspension and limitation on individuals seeking entry as immigrants, pursuant to section 1 of the proclamation, will apply...

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• The U.S. Small Business Administration (SBA) has released new guidance cautioning prospective borrowers that they need to certify that loans under the Paycheck Protection Program (PPP) are indeed necessary to support ongoing operations. • The SBA is providing those companies that already have received PPP loan proceeds but wish to reconsider their certifications the opportunity to return the proceeds by May 7, 2020 — no questions asked. • Businesses that are prospective borrowers under phase 2 of the PPP, as...

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• €5 billion for COVID-19 business resilience and medical technology • Includes €3 billion for companies in Spain and Italy impacted by economic shocks • Additional flexibility to extend existing loans to mitigate economic impact of the crisis The European Investment Bank today approved €5 billion of new financing for businesses hit by the economic shock and for medical technology. The financing is part of the EIB’s quick response to the coronavirus crisis and its economic effects. It includes €3 billion dedicated...

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April 23, 2020 | An internal working group made up of Troutman Sanders Strategies, Troutman Sanders, and Pepper Hamilton attorneys have been working closely together on SBA lending matters and will be providing further analysis as guidance and actions continue. On Thursday, the House of Representatives passed the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266), by a vote of 388 – 5, to provide supplemental funding for federal coronavirus (COVID-19) response programs and activities, sending the bill to...

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April 23, 2020 | On April 23, the Treasury Department and the Small Business Administration (SBA) updated an FAQ document addressing borrower and lender questions concerning implementation of the Paycheck Protection Program (PPP). The FAQ document provides answers to many commonly asked questions relating to payroll cost calculations, eligible businesses (including small business concerns), the exclusion of compensation in excess of $100,000, affiliations and certain SBA application requirements. This most recent updated FAQ provides noteworthy guidance relating to the following question: Do businesses...

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April 23, 2020 | In two recent joint statements, the federal banking agencies have encouraged banks to make short-term loans to consumers and small businesses impacted by the COVID-19 crisis. In their March 30 “Joint Statement Encouraging Responsible Small-Dollar Lending in Response to COVID-19,” the agencies noted that “the important role that responsibly offered small-dollar loans can play in helping customers meet their needs for credit due to temporary cash-flow imbalances, unexpected expenses, or income short-falls during periods of economic...

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