Our panelists discuss updates regarding the response to the challenges & opportunities presented by the COVID-19 crisis.
In Part I, moderator Andrew Thompson poses questions about new issues that our clients have faced as a result of the COVID-19 crisis. Scott Hudson discusses safety measures & concerns that employers must consider to allow for a safe return to work. Juliana Schmidt addresses the potential for Worker’s Compensation claims as a result of the pandemic. Bill Robbinson examines potential effects on tenant-landlord contracts. Sarah Pape explains the most recent updates regarding PPP loans.
In Part II, Andrew Thompson returns to lead our panelists in a discussion of our client’s most common COVID-19 questions. Sarah Pape addresses the constantly evolving PPP loan forgiveness process. Scott Hudson updates employers on reopening businesses safely. Kevin Robinson discusses how COVID-19 has affected litigation & legal proceedings. Laura Sundberg explains important considerations & new opportunities from an estate planning perspective.
Correction & clarification to the answer to one of the live questions asked during Part II relating to PPP loan forgiveness:
Question: If a borrower spends 100% of its PPP loan amount before the end of the 24 week covered period, can the borrower apply for loan forgiveness early, before the end of the 24 week period?
Answer: Even though the PPP Flexibility Act (“PPPFA”) has extended the covered period from 24 weeks to 8 weeks, a borrower who received a PPP loan before the enactment of the PPPFA can elect to use an 8 week covered period instead of a 24 week covered period. As such, if a borrower spends 100% of its PPP loan amount within the first 8 weeks following the borrower’s receipt of the loan funds, the borrower can use the 8 week covered period and should be able to apply for loan forgiveness after the end of the 8 week period.
However, if the borrower does not use 100% of its loan funds in the first 8 weeks and elect to use the 8-week covered period, the borrower will likely need to wait until the end of the 24 week period to apply for loan forgiveness. This is because of the various salary and employee reduction tests that are applied to the borrower. The tests are applied for the entire covered period so it seems to be an “all or nothing” (8 weeks or 24 weeks) approach.
This is an area where we hope to see further clarity and flexibility in the regulations that the SBA and Treasury Department is supposed to be issuing.
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