X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Thomas Lehman, Levine Kellogg Lehman Schneider. Thomas Lehman, Levine Kellogg Lehman Schneider.

Since the Payroll Protection Program (PPP) became law March 27, businesses who applied and obtained PPP loans, or considered applying for them, were given a roller coaster ride of uncertainty as to whether, and under what terms, the loans would be forgiven. First, PPP borrowers who had existing lines of credit with other lenders—not prohibited under PPP—were condemned by Congress and the Treasury Secretary and threatened with criminal investigation. Later, when it became apparent that the rigid requirements for loan forgiveness were unworkable for the businesses most in need, Congress passed legislation to loosen the requirements for PPP loan forgiveness. Still, the current political climate ensures that uncertainty over loan forgiveness will continue. For those borrowers who are denied meaningful loan forgiveness and must add short-term SBA debt to their balance sheets, there is an alternative to reduce the additional debt load: the Small Business Debtor Reorganization Act, Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V became law last February.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

Click here to access the Public Notices and the Courts sections of the The Daily Business Review in PDF format.
Already have an account?

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.