SBA Lending Under the CARES Act: New Paycheck Protection Program, Expanded Disaster Loans, Loan Forgiveness
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will examine the Paycheck Protection Program (PPP) and other features of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which expand upon the existing Small Business Administration (SBA) loan programs in response to the COVID-19 pandemic. The panel will discuss experience with the application and funding processes, legal and administrative requirements for SBA lenders under each program, PPP loan forgiveness, and the short and long term consequences of the PPP to lenders and borrowers.
- Existing SBA programs and framework
- Eligible borrowers
- Approved lenders
- SBA loan guarantee
- Closing and administration generally
- New initiatives under the CARES Act
- Paycheck Protection Program (PPP)
- Application, closing, and administration of the PPP
- Expanded eligibility for economic injury disaster loans and emergency grants
- Loan payment deferrals and subsidies
- Considerations for lenders and their other relationships with PPP borrowers
- Application of the SBA and PPP affiliate rules
- Obtaining PPP loan forgiveness, including advance forgiveness and timing
- Secondary market for PPP loans and the Federal Reserve’s PPP Lending Facility
- Regulatory considerations for PPP lenders
- Short and long term effects of PPP on borrowers and lenders, and interaction with other CARES Act and government programs addressing the economic effects of COVID-19
The panel will review these and other key issues:
- Can lenders that are not currently SBA-approved qualify to participate in these lending programs? What is the process and issues to be considered?
- How does the CARES Act expand upon existing SBA disaster loan programs?
- Borrower and lender responsibilities and applications under PPP and other SBA programs, including borrower applications for loan payment subsidies for 7(a), Title V, and 7(m) loans and PPP loan forgiveness
- What are the legal, regulatory, customer relationship and other pitfalls for borrowers and lenders under the PPP loan program and other new lending initiatives?
Ralph F. (Chip) MacDonald, III
Mr. MacDonald is a financial services lawyer who focuses on M&As, public and private securities, governance, and... | Read More
Mr. MacDonald is a financial services lawyer who focuses on M&As, public and private securities, governance, and policy issues for clients engaged in this industry. Since 1979, he has helped domestic and international clients including bank holding companies, banks, investment banks, broker-dealers, investment managers, and fintech companies. He advises senior management and boards of directors. Mr. MacDonald also provides strategic and transaction guidance, including evolving areas such as regulatory relief and financial services policy. A growing area is the fintech industry, particularly its regulation and relationships with state, federal, and foreign regulators and traditional financial services companies. Clients range from global banks such as Citibank and BNP to regional and community banks. He often advises commercial businesses with respect to relationships and services with their financial services providers. Mr. MacDonald advises clients frequently regarding financial services M&As, asset and liability transactions, public and private securities offerings, Volcker Rule, investments and risk management, and bank, trust company, credit card, fintech, and other financial services charters.Close
Vincent M. (Vince) Morrone
Michael Best & Friedrich
Mr. Morrone represents clients involved in sophisticated transactions, including commercial lending; business planning... | Read More
Mr. Morrone represents clients involved in sophisticated transactions, including commercial lending; business planning and formation; and mergers, acquisitions, and divestitures. His clients include financial institutions and borrowers in secured and unsecured credit transactions, acquisition financing, venture capital alliances, and reorganizations; buyers and sellers in acquisition and divestiture transactions; and private companies on general corporate governance issues.Close