Keep your business in the know during the COVID-19 outbreak.

With information concerning the Coronavirus (COVID-19) rapidly evolving, DRM is committed to providing you relevant and timely guidance on how to navigate this challenging time. We will update this site regularly as new information emerges. 

RECENT DEVELOPMENTS

• August 24, 2020: The SBA published an interim final rule providing further guidance on PPP loan forgiveness related to owner compensation and limitations on eligibility of nonpayroll costs for forgiveness. The guidance clarifies that owner-employees of a C-corporation or S-corporation who own less than 5% of the stock in said corporation are exempt from the owner-employee compensation rule (which caps the amount of loan forgiveness for salary attributable to an owner-employee). The guidance further clarifies that the amount of loan forgiveness for non-payroll costs may not include (i) household expenses for home-based businesses or (ii) amounts attributable to the business operation of a tenant or sub-tenant of the borrower. Finally, the guidance clarifies that rent payments to a related party are eligible for loan forgiveness, in an amount up to “the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business,” so long as the mortgage and lease were entered into prior to February 15, 2020.

• August 24, 2020: While many who have accepted PPP loans now consider the forgiveness aspects and process, be mindful of federal enforcement. To date, the Justice Department has filed 36 PPP fraud cases, charging about 51 defendants. Read more for several cautionary tales.
• August 13, 2020: New Hampshire Governor Sununu signed Emergency Order 65 authorizing the assessment of civil penalties to those who violate any Emergency Orders, rules or regulations under the NH State of Emergency. According to this Order, if a business, organization, entity, property owner, facility owner, organizer or individual recklessly commits a violation, they will be subject to civil penalties up to $1,000 for each violation, or day the violation continues. In addition, the Order gives the Division of Public Health enforcement authority to immediately close an event or impose civil penalties up to $2,000 per day, depending on the violation. Read the full text of Emergency Order 65.
• August 11, 2020: The SBA issued an Interim Final Rule regarding the appeal of SBA loan review decisions made under the Paycheck Protection Program. Mary Parent provides the full details.
• August 11, 2020: The SBA issued some new frequently asked questions regarding the Paycheck Protection Program (“PPP”) loans. Read Mary Parent's write-up.

• August 11, 2020: New Hampshire Governor Chris Sununu has announced the issuance of an order requiring masks to be worn at scheduled gatherings of 100 or more individuals. With the details of the order yet to be released, the Governor announced that the mandate won’t apply to large businesses or to schools, unless there is a “prescheduled” event or school assembly with a large crowd. In addition, enforcement measures (e.g. fines) will be focused on organizers or hosts of such events if they willfully disobey the order.

• August 10, 2020: While the SBA is still preparing for the anticipated August 10 launch of its loan forgiveness portal, earlier this week it released new guidance answering 23 FAQs regarding the forgiveness of Paycheck Protection Program loans. Scott Jaunich provides the details.