On April 24, 2020, the U.S. President signed into law the Paycheck Protection Program and Health Care Enhancement Act (PPP Enhancement Act), which appropriates an additional $321 billion for the Paycheck Protection Program (PPP), as enacted under the Coronavirus
Finance & Bankruptcy Law Blog
Up-to-date Information on Finance, Bankruptcy, & Creditors Rights
The Finance & Bankruptcy Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, covers legal developments and regulatory issues related to finance, bankruptcy, and restructuring. Topics include bankruptcy court rulings affecting sovereign immunity, regulatory enforcement actions in financial services, securities regulations impacting asset-backed securities and hedging, benchmark rate transitions such as LIBOR, and financial institution compliance requirements. The blog addresses the intersection of bankruptcy law with financial regulations, corporate finance transactions, and risk management practices, providing insights into legislative changes, court decisions, and regulatory sweeps affecting financial institutions, creditors, and debtors.
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Federal Reserve Banks and Federal Home Loan Banks May Accept Pledges of PPP Loans as Collateral
The Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) guarantees loans from qualified lenders to small businesses impacted by the COVID-19 pandemic so that those businesses can keep workers employed. In the Third Interim Final Rule issued on April 20,…
Election Time: Bankruptcy Code 1111(B) in the Post-COVID World
Among the only certainties for the post-COVID lending world is the uncertainty of commercial real estate values. Among the classes of real estate that surely will be immediately diminished in value are hospitality and most brick and mortar retail, but even…
FHFA Aligns Freddie/Fannie Monthly Payment Advance Obligations
Responding to pressure from industry groups and members of Congress, the Federal Housing Finance Agency (FHFA) announced on April 21, 2020 that servicers of Freddie and Fannie mortgage loans will only be required to advance four months of missed payments…
Computational Framework for Determining Number of Employees for Eligibility, Qualifying Loan Amount and Forgiveness for a PPP Loan
The Paycheck Protection Program (“PPP”), as enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides federally-guaranteed loans up to a maximum amount of $10 million to qualified businesses, which can be fully forgivable, to encourage businesses…
Further Expansion Of Eligibility And Additional Guidance On The Paycheck Protection Program: The SBA’s April 14, 2020 Interim Final Rule
By Bijal Vira & Nirav Bhatt
On April 14, 2020, the U.S. Small Business Administration (SBA) issued its Third Interim Finale Rule[1] with respect to the Paycheck Protection Program (PPP), as enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The…
Term Asset-Backed Securities Loan Facility
On April 9, 2020, the Federal Reserve issued an updated term sheet for the Term Asset-Backed Securities Loan Facility (“TALF”). Under TALF, the Federal Reserve will make an equity investment of $10 billion in a special purpose vehicle (“SPV”) that…
Precautionary and Prudency Measures for Boards Addressing COVID-19 Business Uncertainties
The COVID-19 pandemic has caused unprecedented economic disruptions worldwide. Businesses that were previously flourishing are now seeing rapid declines in demand and revenue, disruptions in their supply chains, and other operational interferences. Previously projected business plans for development and expansion…
Force Majeure Clauses and COVID-19 – Can Force Majeure Clauses Excuse Performance Under New York or Delaware Law in a Pandemic?
With the World Health Organization declaring COVID-19 a pandemic on Wednesday, March 11, 2020, businesses are likely to continue to feel its effects. When businesses are unable to perform their contractual obligations as a result of COVID-19, force majeure clauses…
Expansion of Eligibility and Additional Guidance on the Paycheck Protection Program (Title I of the CARES Act)
By Bijal Vira & Nirav Bhatt
On April 7, 2020, the U.S. Department of Treasury (Treasury) released a 4/7/2020 Frequently Asked Questions sheet (FAQ)[1] with respect to the Paycheck Protection Program (PPP), as enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.…