Best Practices: Getting Back to SBA Loan Liquidations after the Easing of the Pandemic’s Restrictions
The ongoing pandemic has created unprecedented challenges for SBA lenders who are confronting a stressed 7(a) loan portfolio. In many states, we have seen court systems essentially shut down, halting civil actions across the country. The stay at home orders also have resulted in the postponement of auctions of business assets and real estate, while ... Read More
Best Practices: Overview of PPP Loan Forgiveness Process
The Paycheck Protection Program (“PPP”) was created to help small businesses impacted by the COVID-19 outbreak to be able to retain and pay their employees, and maintain their business operation. In return for complying with the PPP requirements set by U.S. Small Business Administration (“SBA”), the PPP loan would be forgiven. While lenders and borrowers ... Read More
Starfield & Smith Attorneys Named to Pennsylvania 2020 Super Lawyers and Rising Stars Lists
Starfield & Smith is proud to announce that six of its attorneys have been named to the 2020 Super Lawyers and Rising Stars Lists. The lawyers selected practice in the areas of banking; business and corporate; bankruptcy; civil, business, and securities litigation; criminal defense (white collar); creditor debtor rights, and real estate. 2020 Super Lawyers: ... Read More
Best Practices: PPP Loan Forgiveness — Lender Risks of Losing Processing Fees
On May 23, 2020, the SBA released two Interim Final Rules (“IFRs”) on loan forgiveness and its loan review procedures in order to inform borrowers and lenders of the SBA’s process for reviewing PPP loan forgiveness applications. The IFRs state, in part, that if the SBA reviews a PPP loan forgiveness application and determines that ... Read More
Best Practices: PPP Loans to Sole Proprietors, Independent Contractors and Self-Employed Individuals
Paycheck Protection Program (“PPP”) loans are available to sole proprietors, independent contractors and eligible self-employed individuals. In order to qualify for a PPP loan, a sole proprietor, independent contractor or eligible self-employed individual must “submit such documentation as is necessary to establish such individual as eligible, including payroll tax filings reported to the Internal Revenue ... Read More
Best Practices: The Paycheck Protection Program and its Impact on Small Business Change-in-Ownership Transactions
On April 29th, 2020, the SBA and the Department of Treasury issued additional guidance regarding the eligibility of loans to businesses which were acquired via a change in ownership transaction occurring after February 15th, 2020. Section 1102 of the CARES Act provides that PPP loans are available only to applicants that were “in operation on ... Read More