PPP Loan Update: Borrower’s Certification of Loan Necessity & Safe Harbor Extension The SBA has updated its FAQs on the PPP Loans, with the addition of Question 46: How will the SBA review borrowers’ required good-faith certification concerning the necessity of their loan request? The SBA’s answer to this question is: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request [...]

CLIENT ALERT: PPP Loan Increases for Partner Compensation If a partnership received a PPP Loan that only included amounts necessary for payroll costs of the partnership’s employees and other eligible operating expenses, but did not include any amount for partner compensation, then: The PPP Loan amount may be increased to include appropriate partner compensation (even if the loan has been fully disbursed), provided that the lender’s first SBA Form 1502 report to SBA on the PPP [...]

CLIENT ALERT: Updates on Tenant Protections Relating to the Disaster EmergencyBy: Jared R. Mack, Esq. On May 7, 2020 Governor Cuomo issued Executive Order 202.28 extending Executive Orders 202 through 202.14 through June 6, 2020. Accordingly, unless otherwise noted, all orders issued before April 7, 2020 have been extended through June 6, 2020.  Executive Order 202.28 includes provisions that will have a statewide impact on landlords and tenants.  These provisions include limitations [...]

COVID-19: Employee on Unemployment Who Refuses a Rehire Offer; Impact of Rehire Refusal on PPP Loan Forgiveness; New York Shared Work Program New York Unemployment Insurance Benefits A general unemployment insurance benefits guide for employers, including how to notify the Department of Labor if an employee on layoff refuses rehire or fails to report to work, how to respond to a Notice of Potential Charges, and contesting Unemployment Insurance charges is available here: [...]

CLIENT ALERT: PPP Loan Forgiveness - Deductibility of the 8-week Covered Costs The CARES Act clearly stated that the income associated with PPP Loan Forgiveness shall be excluded from gross income.  However, IRS Notice 2020-32, that was issued on April 30th, clarifies that “…no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section [...]