Update on Economic Injury Disaster Loan (EIDL) Advance
The following is the email EIDL applicants have been receiving over the past few days. The good news is that I have heard more and more small businesses, who applied for an EIDL a couple of weeks back,...
View ArticleCARES Act - Health Care Providers to Receive Immediate 6.2% Bonus on 2019...
In addition to relief provided to small businesses, pursuant to the Paycheck Protection Program (PPP), under the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Act earmarked $100...
View ArticleCOVID-19 AND TAX FREE INCOME
Certain payments received by individuals that are related to COVID-19 may qualify for tax-free treatment. When paid by an employer, they are free of Social Security Taxes for both the employer and...
View ArticleSenate Approves Additional Funding for PPP Loans
As most of you have read by now, the Senate approved a measure Tuesday that would provide additional funding for the Paycheck Protection Program (PPP), created to keep small businesses from closing and...
View ArticlePPP Update: Additional $310 billion ready to be funded by SPA; Warnings to...
Even as the Paycheck Protection Program (PPP) was set to reopen yesterday with additional funding, the full extent that public companies tapped the emergency facility is only now becoming clear.
View ArticleCARES Act Provider Relief Fund - Over $40 Billion in Additional Distributions...
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) makes $100 billion in funds available to hospitals and other health care providers for health care-related expenses or lost revenues...
View ArticleIRS DENIES TAX DEDUCTION FOR FORGIVABLE PPP EXPENSES
When the Paycheck Protection Program (PPP) was first announced, many thought it was too good to be true! The government was going to loan small businesses money, which they could spend on allowable...
View ArticlePPP Update: Warnings to PPP Loan Recipients; What is Necessary?
In one of the latest updates, on April 23, 2020, the U.S. Small Business Administration (SBA) sent an important message: loans under the Paycheck Protection Program (PPP) are not for larger...
View ArticlePPP Issues – Rehiring Employees; 12 Weeks Forgiveness Period?
As I have discussed in prior articles, addressing the Paycheck Protection Program (PPP), there is a reduction in the forgiveness of the PPP loan, in the event of a reduction in personnel, when...
View ArticleWHAT YOU NEED TO KNOW JUST IN CASE: BANKRUPTCY
COVID-19 is turning out to be the “black swan” of our lifetimes. Ask yourself, what are you going to do if the pandemic goes on for another year or two? Will you put money into your business in an...
View ArticleAdditional Details Regarding $50 Billion Provider Relief Fund General...
The Department of Health and Human Services (HHS) is in the process of completing a $50 billion general distribution (General Distribution) from the $100 billion available to health care providers...
View ArticlePPP Loan Necessity Update
Late yesterday, the SBA released the following FAQ, which states that if the PPP loan amount is less than $2,000,000, it is deemed to be necessary. If it is over $2,000,000 and determined not to be...
View ArticleSBA Releases Guidance on PPP Loan Forgiveness
On May 15, the SBA released the application borrowers will use to seek forgiveness for PPP loans, together with detailed instructions for its completion. The application and instructions address...
View ArticleBankruptcy in the Era of COVID-19 - Part 2
WHAT YOU NEED TO KNOW JUST IN CASE: BANKRUPTCY- PART 2 This is Part 2 of a series on Bankruptcy. Our first article discussed the differences between Chapter 7 (Liquidation), Chapter 11...
View ArticlePPP Loan Forgiveness Guidance
The Department of the Treasury posted the Loan Forgiveness Application and Instructions for borrowers with Paycheck Protection Program (PPP) loans on May 15, 2020. Below is a summary of highlights,...
View ArticleNew SBA Rules on PPP Loan Forgiveness
Late Friday, May 22, 2020, the SBA issued new interim rules, providing further guidance for borrowers on forgiveness of their Paycheck Protection Program (PPP) loans. The following is a summary of...
View ArticlePROTECTING YOUR LLC OR LIMITED PARTNERSHIP- BANKRUPTCY- PART 3
This is Part 3 of a series on Bankruptcy. This article will discuss the necessity of making the Limited Partnership Agreement or the LLC Operating Agreement an executory contract. Feel free to review...
View ArticlePPP – What’s Next?
As a refresher, the Paycheck Protection Program (PPP) was authorized by the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a $2 trillion bill signed into law in March. In April, the PPP...
View ArticleCOVID-19 AND I NEED OUT OF THIS LEASE- BANKRUPTCY- PART 4
This is the fourth in a series of articles on Bankruptcy. Feel free to review Part 1, Part 2 and Part 3. Sometimes it takes a catastrophic event to shake up the status quo. COVID-19 is such an event....
View ArticleLoss of Loan Forgiveness for FTE Reduction
The Paycheck Protection Program (PPP) specifically requires certain reductions in a borrower’s loan forgiveness based on reductions in full-time equivalent (FTE) employees during the 8-week loan...
View ArticleBREAKING NEWS! – Payroll Protection Program Flexibility Act Passes House and...
As reported in a recent Legal Beat, the U.S. House, last week, overwhelmingly passed the Paycheck Protection Program (PPP) Flexibility Act, by a vote of 417-1. Yesterday, the Senate passed the House...
View ArticlePaycheck Protection Program Flexibility Act – A Deep Dive
The Senate has approved a bipartisan measure that would give more time and flexibility to employers who receive forgivable loans from the Small Business Administration's Paycheck Protection Program...
View ArticleTreasury/SBA Clarification on PPP Flexibility Act
U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza issued a joint statement addressing and clarifying various aspects of the Paycheck...
View ArticleI DON’T CARE IF MY COMPANY GETS SUED…I WILL JUST FORM ANOTHER ONE-BANKRUPTCY-...
This Part 5 of our bankruptcy series. So far, we have covered what you need to know if the event of bankruptcy, the premise of bankruptcy in the era of COVID-19, protecting your LLC and/or Limited...
View ArticlePPP Update – PPP Flexibility Act, New Interim Rules and PPP Loan Forgiveness...
As addressed in previous Legal Beats, the Payroll Protection Program (PPP) Flexibility Act included a number of revisions to intended to increase the likelihood that borrowers will receive full loan...
View ArticleNew PPP Rules Answer 8/24 Week Question; Others Still Remain!
On June 22, the SBA released new Interim Final Rules (IFR) relating to Loan Forgiveness. The IFR updates prior IFRs to conform to the PPP Flexibility Act (PPPFA), specifically relating to the maturity...
View ArticlePPP Funding Extended to August 8! What’s Next?
Late Wednesday, Congress voted to extend funding for the Paycheck Protection Program (PPP), which was scheduled to end on June 30, until August 8. It was signed into law on the 4th of July. To date,...
View ArticlePPP Update – New SBA FAQs
After more than a month of silence, on the part of the SBA, they issued new FAQs on August 4, which provided some additional guidance and clarification, most of which was not borrower friendly! Below...
View ArticleHOW TO TOGGLE LARGE RETIREMENT BENEFITS TO YOUR HEIRS
Here is the scenario. Herbert, age 80, has $3,000,000 in his retirement plan. He has around $7,000,000 in other assets. His wife, Wilma, died recently. Herbert and Wilma have two sons, one a...
View ArticlePPP Update - Summary of August 24th Interim Final Rules (“IFRs”)
After more than a month of silence, on the part of the SBA, they issued new FAQs on August 4, which provided some additional guidance and clarification, most of which was not borrower friendly! More...
View ArticlePPP Update – SBA Issues New Simplified Forgiveness Application for Small Loans
On October 8, 2020, the Small Business Administration “(SBA”) provided a simpler forgiveness application for PPP loans of $50,000 or less. The key simplification is that the borrower can ignore...
View ArticleIRS Issues New Guidance On Treatment of PPP Loan Expenses
On November 18th, the Treasury released new guidance concerning the tax treatment of expenses paid with Paycheck Protection Program (PPP) loan funds. Newly issued Revenue Ruling 2020-27 provides that...
View ArticleHAVING YOUR CAKE AND EATING IT TOO
A number of our clients have asked us about making gifts to family members in order to avoid Federal Estate Tax upon the second death. Currently each spouse can give away either during lifetime or at...
View ArticlePPP Borrower Tax Relief Under New Act
Under the Coronavirus Response And Relief Supplemental Appropriations Act of 2021(the “Act”), passed last week by Congress and ultimately signed into law, PPP borrowers will now be able to deduct...
View ArticleNew IFRs For Paycheck Protection Program Second Draw Loans
On January 6, 2021, the SBA issued interim final rules (“IFRs”) regarding the implementation of section 311 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic...
View ArticlePaycheck Protection Program resumed January 11, 2021
The SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA began accepting applications for...
View ArticleAdditional Expense Categories Eligible For PPP Forgiveness
The Economic Aid Act (“Act”), enacted last month, as part of the stimulus legislation, which, among other things, provided for a second round of PPP loans, expands the list of expenses eligible for...
View ArticleHOW TO SET UP YOUR ESTATE PLAN DURING THE CORONAVIRUS PANDEMIC
The coronavirus global pandemic has made people confront their mortality and spurred many to think about an estate plan. If you are one of them, you may be wondering, what documents you need and how to...
View ArticleBiden Administration Takes Steps to Promote Equitable Access to SBA Relief
On Monday, February 22, President Biden announced the following changes to SBA's coronavirus relief programs to ensure equity: Specifically, on Wednesday, February 24, 2021 at 9 am ET, SBA will...
View ArticlePPP Update - New Rule Good News for Schedule C Filers
The US Small Business Administration (“SBA”) recognizes that many independent contractors and sole proprietors were not able to borrow sufficient funds because their net income, as opposed to their...
View ArticleNew PPP FAQs – Good News for Necessity Requirement
As addressed in previous Legal Beats, in order to qualify for a Paycheck Protection Program (“PPP”) second draw loan, the borrower must demonstrate that they had a 25% reduction in gross revenues,...
View ArticlePPP Likely Extended to May 31
Small businesses got some good news on Tuesday, when the House of Representatives voted to extend the Paycheck Protection Program for two months. On Tuesday, the House passed the PPP Extension Act of...
View ArticlePPP deadline extended to May 31
Thousands of small businesses scrambling to stay afloat as a result of COVID-19 are getting extra time to apply for PPP loans. By a 92-7 margin, on Friday, the Senate passed the PPP Extension Act of...
View ArticleHow Federal Estate and Gift Taxes Work
Many people are concerned that a significant portion of their estates will be consumed by federal estate tax. Federal estate and gift taxes are really a single tax on the value of property transferred...
View ArticleEveryone Needs a Will
Every adult should have a will. If you die without a will, state intestacy law will likely determine who inherits your property. These rules are exactly the same for everybody, regardless of his or...
View ArticleShould You Avoid Probate?
One of the many decisions you will need to make about your estate plan is whether you want to avoid probate. Probate is the legal process for settling an estate after someone has died. It is also known...
View ArticleSituations in Which Probate Might Make Sense
Although avoiding probate is a good plan for many individuals, you may decide that you want your estate to be probated if any of the following are true: 1. The cost and effort of probate avoidance...
View ArticleHow You Can Avoid Probate
An estate planning attorney can help you weigh the pros and cons of probate and give you an idea of the probate costs and time frames in your jurisdiction. If you decide you want to avoid probate, here...
View ArticleUse of Trusts in Estate Planning
Trusts are used for a variety of purposes in estate planning. A trust is a legal relationship in which one person (the trustee) holds legal title to property for the benefit of another (the...
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