On August 26, 2020, Jay Clayton, Chairman of the U.S. Securities and Exchange Commission (SEC), released a Statement on Modernization of the Accredited Investor Definition. This Statement reflects the SEC’s commitment to expanding the pool of eligible accredited investors. For over thirty years, the accredited investor test for individuals has been a binary test based...
By David M. DiSegna On July 15, 2020, Rhode Island Governor Gina Raimondo announced a new small business grant program to be administered through Rhode Island Commerce. The “Restore RI” grant program will initially be funded with $50 million, and grants will be available for up to $15,000 for eligible Rhode Island businesses impacted by...
The Senate has passed legislation (H.R. 7010) providing more flexibility to recipients of loans under the Paycheck Protection Program (PPP). The legislation already passed the House and now just awaits President Trump’s signature. Under the PPP, loans that are used for certain eligible expenses during an applicable time period are eligible for forgiveness. Loan forgiveness may be...
On May 13, 2020, the SBA revised its frequently asked questions and added question #46 – “How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?” In order to receive a PPP loan a borrower had to certify in good faith that “current economic uncertainty makes this loan request necessary...
On April 28, 2020, the U.S. Small Business Administration released a supplemental Interim Final Rule that answered some of the questions being asked by many Paycheck Protection Program (PPP) loan applicants and stakeholders. Further guidance on the loan program is anticipated, but this interim rule adds some additional clarity to the program’s parameters. One important...
On April 21, 2020, the U.S. Senate passed a bill that would amend the Coronavirus Aid, Relief and Economic Security Act (CARES Act) by providing approximately $480 billion in additional funding to combat COVID-19. The new relief package authorizes $310 billion to replenish the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), which exhausted all...
The SBA has recently issued guidance (the “Guidance”) attempting to clarify the affiliation rules related to the “Paycheck Protection Program” loan (“PPP Loan”) under the CARES Act. Businesses can generally apply for a PPP Loan so long as such applicant, combined with its affiliates, has 500 or fewer employees or qualifies under another SBA size...
PS&H Partner Jim Hahn, a member of the firm’s Business and Banking & Financial Institutions Regulatory Compliance Practice Groups, was featured in the Rhode Island Lawyers Weekly recent article exploring “force majeure” clauses in contracts. Often considered part of a contract’s boilerplate language, the clause’s relevance has become the center of attention as the coronavirus continues to...
In our previously published client alerts regarding the coronavirus, we highlighted the importance of reviewing the terms of existing agreements in light of the threats posed by novel coronavirus COVID-19 (“coronavirus”). While businesses may not be able to easily change existing agreements, they should take steps to ensure that they are protected going forward. This...
As businesses contend with the uncertainty caused by the novel coronavirus (COVID-19), evidenced by warnings of an imminent recession and empty grocery store shelves, one potential source of relief is the force majeure clause found in many contracts. Force majeure provisions are included in contracts to excuse a party’s failure to perform due to unforeseeable...
