SBA’s Paycheck Protection Program: Affiliation Still Matters

The SBA’s Paycheck Protection Program went into effect March 27, 2020.  At that time many business owners faced confusion in trying to navigate the affiliation rules to determine their company’s eligibility for the program. Fast forward nearly two years and many businesses that received Paycheck Protection Loans have submitted applications for forgiveness of those loans. Some of those businesses are now having to consider potential affiliation issues that they may have initially overlooked in response to inquiries from SBA in its review of their loan forgiveness application.

We thought this would be a good time to revisit the basics of SBA’s affiliation rules for the Paycheck Protection Program.

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Appeals Court Upholds Preliminary Injunction on COVID-19 Federal Contractor Vaccine Mandate

On Wednesday, January 5, 2022, the U.S. Court of Appeals for the Sixth Circuit issued another setback to the COVID-19 vaccine mandate for federal government contractors. In its opinion, the four-judge panel upheld the November 30, 2021 preliminary injunction and denied the Government’s request to stay the injunction “because the government has established none of the showings required to obtain a stay.” On appeal, the government asserted that the three states involved, Kentucky, Ohio, and Tennessee, and two Ohio sheriffs’ offices which brought the initial claim did not have standing to bring such a case. Additionally, the government argued that even if there was standing, the Property Act authorizes the contractor mandate. However, the Court of Appeals determined all plaintiffs established standing based on four elements and held the Property Act does not authorize the President to take such action.

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Event: Proactive COVID-19 Response for Federal Government Contractors

With COVID-19 cases on the rise, all of us are doing our best to stay safe and healthy. But for federal contractors, the COVID spike also brings increased risks of delays and other problems under active government contracts.

On Thursday, December 3, please join me for “COVID-19: Best Practices for Government Contractors,” a virtual session hosted by the UTSA SBDC Center for Government Contracting/COVID Business Recovery Accelerator. I’ll provide you with a step-by-step proactive approach for handling the potential for COVID-related interruptions and delays to your contracts–and help you ensure that you get paid.

To register, follow this link. I hope to see you there!

SBA Inspector General Warns of ‘Widespread’ Fraud in COVID-19 Loan Program

According to the U.S. Small Business Administration Office of the Inspector General, potential fraudsters have obtained $250 million in federal funds intended to help businesses survive the impact of COVID-19.

The Inspector General also identified $45.6 million in potentially duplicate payments and warned that with well over $220 billion left to give out, rapid changes were needed.

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COVID-19 Lockdown No Excuse for Late Filing, GAO says

In a recent bid protest decision, GAO said being under a COVID-19 “Stay at Home Order” was no reason to miss a comments filing deadline.

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Congress Changes the Rules on PPP Loan Forgiveness, but Questions Remain

Newly passed changes to the Paycheck Protection Program are designed to make it easier for small businesses to have their loans forgiven.

The Paycheck Protection Program has been around since the end of March and provides funds for small businesses to retain employees and keep operating during the global coronavirus pandemic. If used properly, the business should have all or a portion of the loan forgiven. The new law eases some of the restrictions on how that money can be spent.

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