Creditors' Rights & Bankruptcy

Last night, the U.S. Small Business Administration extended the safe harbor deadline for the repayment of Paycheck Protection Program loans from May 14, 2020 to May 18, 2020.

Against a backdrop of considerable anxiety in the business community regarding many aspects of the Paycheck Protection Program (“PPP”), the U.S. Small Business Administration (“SBA”) today issued its promised guidance on how it will review a borrower’s good-faith certification of economic need in connection with a PPP loan.

In a time when more than $650 billion in stimulus funds are being pumped through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), the potential for bad actors to create havoc for business owners reliant upon these mostly forgivable loans is almost guaranteed.

As businesses configure their workplaces to include new safety measures such as providing temperature checks, supplying necessary personal protective equipment (PPE) to employees, or installing hand sanitation stations, they must also be cautious of suspicious activities from fake suppliers, vendors, and other scammers attempting to exploit the current COVID-19 pandemic.

The Los Angeles Lakers, one of the most valuable sports franchises in the world, returned to the front page this week despite the suspension of the NBA season, and there are important repercussions for participants in the Paycheck Protection Program (“PPP”).

In an apparent response to controversy related to public companies and larger concerns obtaining Paycheck Protection Program (“PPP”) loans, the Small Business Administration, in consultation with the Treasury Department, today issued additional guidance intended to underscore that loan requests must be necessary based on the actual economic need of the borrower.

On April 8, 2020, the Center for Disease Control and Prevention (“CDC”) provided updated guidance for COVID-19 exposed employees for essential businesses, such as groceries, hospitals, and first responders.

LOUISVILLE, Ky.—Benchmark Litigation recently named Stites & Harbison, PLLC as Litigation Firm of the Year for Kentucky at its 2020 Annual Awards Gala.

Provisions of the Paycheck Protection Program of the Coronavirus/COVID-19 economic relief legislation remain subject to change. On Thursday, April 2, 2020, the SBA issued a 31-page interim final rules to update and clarify the existing requirements. The content of this article is current as of Tuesday, April 7, 2020.

On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act” or “Act”) passed and was signed – it is the largest economic aid package in United States history.

LOUISVILLE, Ky.—The Greater Louisville Market of the March of Dimes has appointed Stites & Harbison, PLLC attorney Brian Bennett to its Board of Directors.

The Families First Coronavirus Response Act, effective April 1, 2020, requires certain public employers and private employers with fewer than 500 employees to provide E-FMLA and Emergency Paid Sick Leave to eligible employees. Employers must notify current employees of these benefits by circulating the official Notice of Employee Rights published by the Department of Labor.

NASHVILLE, Tenn.—The Mid-South Commercial Law Institute (MSCLI) recently elected Stites & Harbison, PLLC attorney Erika Barnes as a director of its 25-member Board of Directors.

As the country takes action to slow the spread of the COVID-19 coronavirus, sporting events, concerts, and business conferences are being cancelled at an astounding rate. Each day that passes since the outbreak brings new cancellations, government containment efforts, and complex legal questions. The initial visible impact in the United States has been predominantly to the hospitality and entertainment industries, with cancellations significantly affecting venues, attendees, hotels, and caterers; however, the impact of the coronavirus is sure to touch contractual agreements across all industries moving forward. How exactly will the coronavirus affect contracts? The answer: it’s complicated.

LOUISVILLE, Ky.—Stites & Harbison, PLLC recently elected three members to the firm’s six-member Management Committee, replacing three attorneys who completed their terms of service. The new committee members are attorneys Erika Barnes, Carol Dan Browning and Richard Wehrle.

On Wednesday, February 19, 2020, the Small Business Reorganization Act of 2019 creating a new Subchapter V for small-business debtors (less than $2,725,625 in debt) becomes effective. The purpose of this act is to eliminate some of the costly elements of a business bankruptcy reorganization and streamline the procedures.