Numerous companies and individuals will be (or already are) negatively impacted by the COVID-19 pandemic in some way. As a result, many will be looking to the terms of their commercial contracts to determine if there is a way to minimize their own financial losses and exposures in the face of forced closures, cancellations, and general business interruption. However, not all clauses are created equal…
As the bumpy rollout of the SBA’s Paycheck Protection Program continues, the SBA provided new interim guidance permitting organizations to request an increase in the loan amount to include partnership income up to $100,000. As partners and business owners are not traditionally considered employees, it was previously an open question whether partners’ income could be included in payroll costs when calculating the loan amount.…
As the world has been turned upside down by the onslaught of COVID-19, it has and will have significant impacts on contracts and agreements for many years to come. In this unprecedented time, it is important to look back on the essence of force majeure in existing contracts, and in the absence thereof, what the current state of the law has to say about such…
Justice Jeffery Brown of the State Supreme Court issued a ruling that strikes down Nassau County’s collection of a $335 fee that the County has been collecting to verify each tax lot referenced in any document presented for recordation with the County Clerk. In the ruling, the Court ruled the fee is an unlawful and unconstitutional tax. The fee originated with former County Executive Edward…
As the construction industry inches ever so closer to reopening all construction in the New York metropolitan area, contractors should use the remaining downtime to educate and prepare themselves for what will be the “new normal” in terms of required site safety following COVID-19. Being proactive about COVID-19 safety while your project is inactive is key to a safer and successful project in the future.…
This is an update to Judy Lynn Simoncic, Esq. and Erik W. Snipas, Esq.'s April 22, 2020 article. In three short weeks since the first edition of our article was published on April 18, 2020, so much has changed in the way in which land use applications are being filed and processed with municipal agencies throughout Long Island. As agencies continue to adapt to…
The SBA is continuing to post information in question and answer format. One of the more interesting posts on May 6 includes guidance for employers who laid employees off before getting the PPP. If those employees refuse to now come back to work, the SBA will now NOT penalize the employer’s loan forgiveness, if the employer goes through certain steps: 40. Question: Will a…
By Michael A. Ciaffa, Joseph V. Cuomo and Danielle B. Gatto The coronavirus pandemic has sickened and killed too many individuals in our community on Long Island. It has also devastated many small businesses. At a time when many local businesses are on life support and failing, our government leaders have to act, decisively, to protect the businesses that remain. We are lawyers, not doctors,…
There is very little difference between the prior program and the current program. It is really just an extension with some restrictions for well-funded companies. 1. Applications are first come, first served. Loans are being processed on a first come, first served basis. The first round of funds was allocated in less than two weeks. Any business or individual considering a PPP loan should…
On Friday, April 24, 2020, President Donald J. Trump signed a $484 billion stimulus bill, amending the Paycheck Protection Program, Economic Injury Disaster Loans, and Emergency Grants which included an additional $310 billion in the paycheck protection program and an additional $10 billion in funding for the SBA’s Emergency Injury Disaster Loan Program. In response, the SBA announced that it would begin accepting application…