Here is a roundup of the June news from the Odin, Feldman & Pittlemen, P.C. COVID-19 Resource Center and about new Virginia statutes.
New Paycheck Protection Program Flexibility Act
On June 3, 2020, the Paycheck Protection Program Flexibility Act of 2020 (PPP Flexibility Act) was unanimously approved by the Senate, after overwhelming approval by the House last week. Under the PPP Flexibility Act, which is expected to be signed into law by the President, the CARES Act was amended to provide additional flexibility to borrowers. The highest profile change is to the definition of “covered period,” which now shifts from eight weeks from loan origination to the earlier of 24 weeks or Dec. 31, 2020.
Learn more about the PPP Flexibility Act from Shareholder Michelle DiCintio by CLICKING HERE.
Four Things to Know About the CARES Act and the New Small Business Bankruptcy Reorganization Act
In an attempt to make chapter 11 more streamlined and less expensive for debtors, Congress amended the bankruptcy code to add a brand new reorganization chapter: Subchapter V. Subchapter V is available exclusively to small-business debtors and provides a new option that is intended to be quicker and cheaper; it also offers less oversight and fewer reporting requirements than a traditional chapter 11 case. Congress originally made the new Subchapter V option available to all businesses with $2.7 million or less in aggregate secured and unsecured non-contingent and liquidated debt. That amount was increased to $7.5 million for the rest of 2020 under the CARES Act.
Learn more from OFP Attorney Brad Jones: CLICK HERE.
SBA, Treasury Streamline Loan Forgiveness Application and Update Guidance
Earlier this month the Small Business Administration (SBA) and Department of Treasury streamlined the path to applying for loan forgiveness under the Paycheck Protection Program (PPP), the lifeline extended to small businesses suffering financial pressures resulting from the COVID-19 pandemic. A revised loan forgiveness application and a new EZ version of the form are designed to slash the layers of paperwork, documentation and calculations required to request loan forgiveness. New instructions for Borrowers were also issued for both the Revised Form and the EZ Form.
Learn more from OFP Shareholder Michelle DiCintio.
New Virginia Contractor Misclassification Law
Spring brought significant changes to Virginia’s employment law landscape. Virginia Governor Ralph Northam recently signed a series of new employee-centric laws, including the ones intended to fight against worker misclassification.
Learn more from OFP Shareholder Sara Sakagami: CLICK HERE.