Tagged: Coronavirus

UPDATE: Federal Reserve Board Expands Main Street Lending Program

After receiving extensive public comment during the past month, the Federal Reserve announced on April 30, 2020 that it will expand the scope and eligibility of its Main Street Lending Program (“Program”). The Federal Reserve’s recent action follows the unprecedented steps taken by the Board of Governors of the Federal Reserve on April 9, 2020, to provide up to $2.3 trillion in credit facilities to households, employers, and state and local governments in response to the COVID-19 emergency’s impact on the U.S. economy. Gibbons previously covered these newly announced programs in a client alert. The Program facilitates lending to small and medium sized businesses. The Federal Reserve received 2,200 submissions relating to the Program, and on April 30, 2020 issued two updated Term Sheets and an initial Term Sheet, which are summarized as follows: The Program comprises the Main Street New Loan Facility (MSNLF), the Main Street Expanded Loan Facility (MSELF), and the new Main Street Priority Loan Facility (MSPLF). Below is a side-by-side comparison chart and additional details about the Program. Program Loan Options MSNLF MSPLF MSELF Term 4 years 4 years 4 years Minimum Loan Size $500,000 $500,000 $10,000,000 Maximum Loan Size Lesser of $25M or 4x 2019...

COVID-19: Federal Reserve Announces $2.3 Trillion in Loans

On April 9, 2020, acting with the approval and consent of the Secretary of the U.S. Treasury, the Federal Reserve took unprecedented additional action using its statutory emergency lending powers to provide immediate support to the national economy. In so doing, the Board of Governors of the Federal Reserve adopted a series of measures that will provide up to $2.3 trillion in credit facilities and loans to households, employers, and state and local governments, consistent with the Federal Reserve’s emergency lending powers under Section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)). In particular, the Federal Reserve will adopt or expand on the following programs: Main Street New Loan Facility (MSNLF) and Expanded Loan Facility (MSELF): The Federal Reserve will purchase up to $600 billion in loans, and the Department of Treasury, through Section 4027 of the Coronavirus Aid, Relief, and Economic Securities Act (“CARES Act”), will make a $75 billion equity investment in a single common special purpose vehicle (SPV) in connection with the MSNLF and MSELF, both of which are designed to facilitate lending to small and medium sized businesses by eligible lenders (i.e., US insured depository institutions, US bank holding companies, and US savings and loan...

NJABC Issues Guidance and Provides Relief to Certain Licensees and Permit Holders During COVID-19 Crisis

The COVID-19 pandemic has presented unforeseen challenges to countless businesses across the country. Businesses that serve alcoholic beverages for on-premises consumption have been hit particularly hard. Through Executive Order No. 107 (the “Order”), and in connection with the declared State of Emergency, New Jersey Governor Phil Murphy imposed certain restrictions on restaurants and bars. On March 30, 2020, the State of New Jersey Division of Alcoholic Beverage Control (“Division”) issued Advisory Notice 2020-03, which outlines the Division’s interpretation of the Order and provides guidance to licensees concerning the activities in which they may engage in during the COVID-19 crisis. All license holders in the state should review the advisory notice in full, in addition to some of the major points outlined below. Following those points is an explanation of the special ruling regarding Limited Brewery License holders that was issued by the Division concurrently with the advisory notice, and a summary of some recent changes in protocol for interactions with the Division and its staff. Lastly, there is a brief summary of the April 1, 2020 order issued by the Division authorizing the extension of certain alcoholic beverage permits. Advisory Notice 2020-03 Retail consumption licensees: Bars, restaurants, or other establishments...

Third Phase of Federal Relief for Coronavirus: What Details We Know Right Now About the Legislation

While some companies have already begun to apply for relief from the Small Business Administration (SBA) and other government entities, others are waiting to see what additional programs may be on the horizon. While we do not know all the details of Phase III legislation in Congress, we do know it will include: Support for Businesses $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs $17 billion for SBA to cover six months of payments for small businesses with existing SBA loans A retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis SBA loan forgiveness eligibility for rent, mortgage, and utility costs Support for State and Local Government $150 billion for a state, tribal, and local Coronavirus Relief Fund $30 billion for the Disaster Relief Fund to provide financial assistance to state, local, tribal, and territorial governments, as well as private nonprofits providing critical and essential services $10 billion for the Indian Health Services and other tribal programs Support for Industries $150 billion increase in the Marshall Plan for our healthcare system $30 billion in emergency education funding $25 billion in emergency transit...

Financial Disaster Relief for Start-Ups – Yes, It Is Possible!

The specific challenge we are addressing here is for start-ups and other early-stage businesses. Gibbons attorneys are heavily involved in advising businesses in all industries and of all sizes on the full range of state and federal coronavirus disaster relief programs available to them. Start-ups and other early-stage companies face particular challenges in obtaining governmental relief. Gibbons understands this and is here to help. With our strong commitment to start-ups and other early-stage businesses, we recognize your dire need for funds for survival, as well as growth, at this critical period. We also recognize that the federal and state application requirements seem staggering. Founding teams are confronted with overwhelming requests for tax returns, current financial statements, monthly sales figures, and similar requirements. Which aid program(s) should you pursue? How do you decide? How does a pre-revenue or newly launched start-up demonstrate to federal and state agencies substantial economic injury? How do you determine the best route for disaster assistance with the highest chance of short-term success and without being overwhelmed by red tape? What is its most recent pre-coronavirus valuation, and how was it justified – for example, thought independent third party investments or a verified order pipeline? How much...

Explanation of Governor Murphy’s Executive Order 107 Regarding Non-Retail or Manufacturing Businesses

Governor Murphy issued Executive Order 107 on March 21, 2020 (the “Order”), which requires the closure of all non-essential brick-and-mortar retail businesses, and requires all New Jersey residents to remain at home or at their place of residence unless engaging in one of nine exempted activities. Order at ¶ 2. One of the exempted activities permitting travel within the State is when a person is “reporting to, or performing, their job.” Id. However, and as it relates to this exemption, the Order requires that “all businesses or non-profits in the State, whether closed or open to the public, must accommodate their workforce, wherever practicable, for telework or work-from-home arrangements.” Order at ¶ 10. In the event that the functions of a particular employee or employees cannot be performed through a telework or work-from-home arrangement, the Order allows those employees to be at the place of employment, but the business or non-profit must make its “best efforts to reduce staff on site to the minimal number necessary to ensure that essential operations can continue.” Order at ¶ 11 (emphasis added). The Order specifically identifies certain types of employees that may need to be physically present at their place of businesses. These...

Newly Passed Bills Boost NJ’s Healthcare Industry

The New Jersey Legislature worked quickly to send Governor Murphy a package of bills to address various issues related to the coronavirus outbreak. Governor Phil Murphy has already signed legislation (A3860 and A3862) to expand access to telehealth services and to allow professional and occupational licensing boards to expedite licensure of out-of-state professionals. Assembly Bill 3860 relaxes the existing telehealth requirement and allows practitioners to provide and bill for telemedicine. Specifically, for the duration of the coronavirus public health emergency, any New Jersey licensed healthcare practitioner will be authorized to provide and bill for all medically appropriate services using telemedicine and telehealth. A practitioner who is not licensed in New Jersey may provide healthcare services under the bill using telemedicine and telehealth, provided that: (1) the practitioner is licensed in another state; (2) the services provided by that practitioner are consistent with the practitioner’s authorized scope of practice; (3) the services provided are limited to services related to screening for, diagnosing, or treating COVID-19, unless the practitioner has a preexisting provider-patient relationship; and (4) if the encounter does not relate to COVID-19, the practitioner must advise that the practitioner is not authorized to provide services and recommends that the patient...

The Coronavirus Pandemic and Your Business: How We Can Help – The Big Picture

The unprecedented scope of the response to the coronavirus (COVID-19) pandemic has drastically affected every facet of life and continues to impact our clients in a growing number of ways. Gibbons attorneys have been working closely with clients over the past weeks to navigate emergent, unexpected challenges in a wide range of areas, from the novel human resources issues that arise when an entire workforce is required to work remotely – or when workplaces or specific jobs within a workplace are not equipped for work-from-home arrangements – to perhaps first-time interactions with local, county, and state officials and regulators. Over the coming days, Gibbons will continue reaching out regularly to clients to let you know the various ways we can assist you with advice, counsel, best practices, and creative solutions for this turbulent situation, to help you ensure operational continuity and emerge from the current crisis. Please do not hesitate to contact Kevin G. Walsh, Co-Chair of the Gibbons Government & Regulatory Affairs Department, with any general questions regarding your legal obligations and options in connection with the COVID-19 pandemic. More in the “Coronavirus and Your Business” Series: Insurance Coverage in the Age of COVID-19 Economic Loss Recovery/Minimization with State...

Economic Loss Recovery/Minimization with State and Federal Programs

As it has successfully done for its clients in prior emergencies (e.g., Superstorm Sandy), a Gibbons interdisciplinary team will work with you to coordinate securing available assistance from state and federal sources. In doing so, Gibbons will also review with you any relevant insurance policies for coverage of any expenses or business income losses that may be sustained/incurred as a result of the COVID-19 national emergency. The Gibbons interdisciplinary team will advise you on the full range of state and federal programs being authorized by law, established, or expanded to assist businesses with losses related to the coronavirus (COVID-19) crisis. Working with clients’ senior management teams, Gibbons will provide strategic advice on the internal measures to be initiated immediately in order to qualify and begin preparing applications for financial assistance from government agencies, including: U.S. Small Business Administration (SBA) The federal government’s $8.3 billion Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 includes certain provisions that allow the SBA to administer loans connected with this crisis. In addition, the SBA is authorized to offer an additional $50 billion in low-interest loans to address losses caused by the pandemic and the response thereto. A maximum of $2 million can be...