SBA Updates Guidance on Payroll Protection Program Compliance

On May 13, 2020, the SBA, in consultation with the Department of the Treasury, updated its Frequently Asked Questions to include a new Question 46 that provides additional guidance about the certification needed to prove that the funds were necessary in order to maintain payroll and thus eligible for forgiveness.

Wilmington Trust and DOL Reach $88M Settlement

In a press release issued on April 30, the Department of Labor (DOL) announced that it had reached an agreement with Wilmington Trust "to pay a combined $80 million to 21 employee stock ownership plans (ESOPs) for which it serv

SBA Issues PPP Enforcement Guidance

The Small Business Administration (SBA) is maintaining a FAQ document on the PPP program that will be regularly updated. The SBA states, "Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the . . . PPP Interim Final Rules."

EBSA Head Preston Rutledge to Step Down

Pension & Investments is reporting that Preston Rutledge, the Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA), will be stepping down from his post in May.

ESOP Trucking Company Praised in White House Ceremony

In recognition of their increased and successful efforts amid the coronavirus outbreak, President Trump praised a number of shipping and trucking companies, including Tennessee-based ESOP Big G Express.

PPP Funds Exhausted

Update April 22: Congressional leaders and the White House announced an agreement yesterday which would, among other things, nearly double the amount available through the Paycheck Protection Program (PPP) by adding $320 billion in funding.

ESOP Companies and the Paycheck Protection Program

We surveyed ESOP companies starting on April 10 in order to gather data on how they are faring so far in the application process. As of this writing, we have received 164 responses from companies with ESOPs. Of these, 115 or 70% have already submitted a PPP loan application, and most of the rest are actively working with a lender.

Resilience

As I talk with members, the word that keeps coming to mind is “resilience.” Some of you reading this are facing terrible choices and no-win situations. Some of you are seeing trouble approaching.