MPL General Counsel Corner: Time to clarify…and a little humor

March 30, 2020

I hope that you were able to pause a bit over this weekend and spend some much-needed quality time with your family friends (of course 6 feet apart while engaging in such activity – ).  Nothing earth-shattering has been announced since Friday, which gave us the opportunity to dig in a little more on certain programs.  Below are some of the more relevant items that may be of interest to you:

  1. SBA Loans, State Programs, borrowing from my Uncle Joe – which is the right program for me and my business/organization?:  The long and short of it is…..ready, and I had to go to law school to learn this concept……IT DEPENDS.  Below are a few sources and topics that may help you out:
    1. SBA Consultants and Preferred Lenders:  We are in the process of compiling a list of SBA Consultants and preferred lenders who can help you navigate the process.  The most common answer we get in our discussions with them has been:  “the updates are changing daily….please give us a few days to sort it out”;  IF YOU WOULD LIKE TO BE CONNECTED TO OUR CONTACTS, PLEASE EMAIL MYSELF OR OUR OFFICE FOR HELP.
    2. Coronavirus Emergency Loan Small Business Guide and Checklist – The US Chamber of Commerce provided a useful small business guide and checklist for Coronavirus Emergency Loans.
    3. If I have employees that make over $100,000 per year, are their salaries eligible for coverage under the Paycheck Protection Program (PPP)?  In calculating the maximum loan amount you can get under the PPP, a business can apply for 2.5X the average monthly payroll costs, not to exceed $10m.  Compensation of an individual employee in excess of an annual salary of $100k is excluded from the calculation.  This same calculation & exclusion is applicable to the loan forgiveness program for the first 8 weeks after the loan approval.  So, which is it, is the full salary excluded or just the amount above $100k.  We recommend that you discuss this question with your SBA lender or consultant.  If official guidance is released, we will update you ASAP.
    4. SBA Express Bridge Loan (EBL) Program:  Prior to the passage of the CARES Act, the SBA had released guidance that an express bridge loan of up to $25k could be applied for as a business awaits a long term financing approval.  It is not clear how this program relates to the $10k bridge loan program covered under the CARES Act for Economic Injury Disaster Loan (EIDL) Applications, but we are seeking clarification.   Linked here is a guide for the EBL Program.
  2. When will get my stimulus check and how much will it be?  The Washington Post has published a calculator which estimates the amount for you.  Check it out:
  3. NJ Ramps Up Stay At Home Order and Business Restrictions:  If you are thinking of having a corona party in NJ, beware….they will find you…..see the story here.
  4. Preppers aren’t just a reality show anymore:  Check out the latest weekend update from the Hustle.  The numbers are pretty interesting.  In order to prepare for a doomsday scenario, a survey of 15 preppers showed they each spent an average of $10,393 in total over 7.6 years ($1366 per year) on food and gear.
  5. Upcoming Webinars of interest:
    1. Stambaugh Ness:  The next townhall session covering tax, HR, technology and more related to the current situation will on Tuesday March 31st from 2-3pm.  Registration and prior session recordings are available at the following link:
    2. NFIB Webinar:  The NFIB will be hosting part III of its Coronoavirus webinars on 3/30/2020 at 12pm.  The link for registration is webinar: 

And last, but not least, the following critical advisory was just released (sent by friend and famed UVA alum Todd Marsteller):

Critical Advisory - 8pm is now the official time to remove your day pajamas and put on your night pajamas.

 Please see all of our updates at the following link:

As always, please don’t hesitate to email myself or anyone in our office with any questions or comments. 

Also, please feel free to forward our updates to others. 

Keep moving forward!  We will get back to normal.


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