Since the COVID-19 Relief Bill passed was enacted on December 27 (including the 8(a) term extension that we discussed earlier), the 15-day window for SBA’s rules on the extension falls on January 11. Here are some thoughts on how we think SBA may fill in the gaps for this important 8(a) term extension, based on our interpretation of the statute and feedback from SBA.Continue reading
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.Continue reading
Many small businesses are struggling right now. And PPP loans may offer some much-needed relief under the circumstances. But how do you know if it is a good idea to accept the loan for your company?
Unfortunately, the only answer is “it depends.” There is no one-size-fits-all response because each company—and the effect of COVID-19 on each company’s business—is different. However, SBA’s recent guidance has provided a few crucial considerations for making this decision.Continue reading
**UPDATE 5/14/20: Since publication of this post, the SBA has now updated the PPP Safe Harbor deadline to May 18. This post has been updated to include this additional information.
Just hours before the first extended May 14 deadline for businesses to return “unnecessary” Paycheck Protection Program loans without penalties, the SBA has published new guidance on how it will review borrowers’ required good-faith certifications.Continue reading
Contractors in the COVID-19 era may be tempted to think that the Government will compensate them for increased costs caused by virus-induced shutdowns, quarantines, and the like. And this line of thought has some inherent appeal.
After all, the virus was entirely unforeseen by both parties when the contract was inked. So shouldn’t the customer–the party wanting the good or service–bear the risk of these extraordinary events?Continue reading