10/7/2023 0 Comments Ppp loans large companiesAt the same time, the Treasury Department announced a safe harbor provision, reassuring borrowers that if they certified economic need for the PPP loans but, in fact, had alternative sources of liquidity sufficient to support their ongoing operations in a manner that was not significantly detrimental to their business, they could return the PPP loan proceeds by without consequence. Treasury opined that “it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.” This language sparked fear in many borrowers who wondered how much liquidity it would take such that the certification no longer would be made in good faith, and what the implications were for non-public companies who nonetheless had access to lines of credit or investors. This uncertainty peaked when, likely in response to high profile loans to large restaurant chains and other economically viable businesses, the Treasury Department published informal guidance on Apsuggesting that small business concerns may face civil, or even criminal, penalties if they certified economic need for PPP funds in bad faith, such as if they were owned by large companies with adequate sources of liquidity that provided a viable funding alternative. Moreover, in light of the economic and public health uncertainty posed by the pandemic when PPP loans first became available in early April 2020, nearly all small businesses had at least some legitimate concerns about their ability to meet payroll demands. When the CARES Act passed, however, the Treasury Department and SBA offered little guidance as to what it meant for a small business concern to certify that it had a current need for such funds to help maintain payroll. The primary appeal of the PPP program, which on its face is highly favorable to borrowers ( i.e., very low interest, lengthy repayment term) is that the Small Business Administration (SBA) will forgive these loans if the employer-borrowers maintain headcount, or nearly all of their headcount, through June 30, 2020. The 2020 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which Congress passed in late March 2020 in order to provide relief to businesses and taxpayers affected by the COVID-19 pandemic, included the Paycheck Protection Program (or PPP) loan program – which allowed small business concerns (generally speaking – albeit with some notable, high profile exceptions – those with fewer than 500 employees) to apply for government-backed loans to cover payroll expenses and incentivize employee retention if they certified economic need. Air quality alerts were in effect in 14 states on Tuesday.By Laura Lawless on Posted in CARES Act, Coronavirus, COVID-19, Employment Law, Legislation, News, Regulation Smoke from the fires is blanketing the East and Midwest, causing concerns for residents' health. are grappling with poor air quality as Canadian wildfires continue to burn. Firefighters are concerned that the combination of dry vegetation and the heat wave could spark dangerous wildfires, posing further threats to the state. The heat wave is shifting California's trajectory for fire season, which started slowly due to a record snowpack. Crews have been tirelessly navigating challenging terrain to contain the Lodoga Fire in Northern California, believed to have been sparked by lightning. "I cry all the time, I like yell at the heat to like go away," said Cristina Hill, an unhoused woman.Īmid the heat, California firefighters are battling brush fires around the clock. At least 12 deaths in Maricopa County this year have been attributed to extreme heat, with the most vulnerable, including those without housing, being the hardest hit.
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