Insights on Business Loan Task Force

In response to public feedback to the initial terms of the Main Street Lending Program, the Federal Reserve Board announced on April 30, 2020, an expansion of the loan options available to businesses and an increase in the maximum size of businesses that are eligible to borrow under the Program.

On May 3, 2020, the SBA and the US Department of the Treasury released new guidance to assist businesses with calculating the forgiveness amount for Paycheck Protection Program (PPP) loans, with respect to employees who reject an offer to be rehired by a PPP borrower.

Revised term sheets and FAQs issued by the Federal Reserve Board expand the program and provide additional guidance for borrowers affected by the COVID-19 crisis. A chart outlining the updated term sheets can be found in the link below.

On April 24, 2020, the US Department of the Treasury released new guidance to assist businesses with calculating the maximum Paycheck Protection Program (PPP) loan amount to which they are entitled. 

Arent Fox is pleased to announce the expansion of its Corporate & Securities practice with the addition of Partner Tal M. Unrad in Boston.

The CARES Act specifies that a PPP borrower will be eligible for forgiveness of indebtedness on a PPP loan in an amount equal to the sum of payroll costs, covered mortgage interest payments, covered rent payments, and covered utility payments made during the eight week period after loan origination.

A Maryland federal District Court Judge declined to issue an emergency temporary restraining order on April 13, which was intended to remove eligibility restrictions put in place by Bank of America under the Coronavirus Aid, Relief, and Economic Securities Act’s Paycheck Protection Program. 

Many senior living owners and operators have found that the Payroll Protection Program loan program either provides insufficient support to them or that they are ineligible for PPP loans.

Using the authority contained in Section 13(3) of the Federal Reserve Act, the Federal Reserve and the Secretary of the Treasury established the Main Street Lending Program to make up to $600 billion in loans available to small and mid-sized businesses. 

The Main Street Lending Program (the Program) is separated into two distinct facilities – the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF). The points below outline why the Program could be attractive to hotel owners, hotel operators, and their lenders.

On March 23, 2020, the Board of Governors of the Federal Reserve, with the approval of the Secretary of Treasury, authorized the Federal Reserve Bank of New York to establish and operate the Term Asset-Backed Securities Loan Facility.

The CARES Act authorized the Secretary of the Treasury to make up to $500 billion in loans, loan guarantees, and other investments for eligible businesses, States, and municipalities.

Below is a summary of the Main Street New Loan Facility and the Main Street Expanded Loan Facility, details of which were released by the Federal Reserve this morning. Arent Fox will continue to update, and expand on, this summary as more information becomes available.

On April 6 the Small Business Administration (SBA), after consulting with the Department of Treasury, published a set of Frequently Asked Questions relating to the Paycheck Protection Program.

On April 3, the Small Business Administration issued two additional rule updates affecting the Paycheck Protection Program.

On April 2, the Small Business Administration published an Interim Final Rule intended to amend certain existing regulations in order to assist lenders and borrowers in advance of the April 3 opening submission opportunity for the newly established Paycheck Protection Program.

The Coronavirus Aid, Relief, and Economic Security Act includes three programs aimed at providing relief to businesses during the COVID-19 pandemic: the new Paycheck Protection Program, the new Mid-Size Business Loan Program, and an expansion upon the existing Economic Injury Disaster Loan Program.

Our Task Force has a summary of the Short-Term Working Capital Loans to Support Small Businesses and The Hospitality and Restaurant Sectors.

Below is a summary of the Mid-Size Business Loan Program, which is included in the Coronavirus Economic Stabilization Act of 2020.

Arent Fox is counseling clients on the business loan programs included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

After midnight on the East Coast on Wednesday, March 25, negotiators from the U.S. Congress and Trump Administration finally agreed to the framework of a historic $2 trillion bill. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) constitutes a new Marshall Plan for our nation.