PPP Math for the Self-Employed: And, Yes, There is Still Time
Verrill, May 2020

The Small Business Administration reports that as of May 23 it still had nearly $150 billion of untapped Paycheck Protection Program funds. The Program has been underutilized by self-employed business owners, in part due to complexity. Those micro-businesses, however, make up a significant slice of the U.S. economy and generally would be eligible for PPP funding. This article illustrates potential PPP benefits for a self-employed owner with no employees. If you are employed through your S corp or C corp, this article is not for you...

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Juggling the Costs of Reopening and Litigation: Try Mediation
Verrill, May 2020

State governments are creating paths to restart their economies. Businesses desperately want to start generating income and put the COVID-19 crisis behind them. Companies and their management are closely studying the guidelines issued by the Center for Disease Control and Prevention and other governmental entities, keeping track of their Paycheck Protection Program expenditures with the hope of converting the loan to a grant, and calculating the cost of reopening with all of the new safety measures in place...

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FINALLY!!! . . . SBA Guidance on the Forgiveness Math
Verrill, May 2020

The Punch Line: On Friday, May 15, the Small Business Administration published a new form entitled Loan Forgiveness Application Instructions for Borrowers which, at long last, provides a great deal of guidance on how to calculate loan forgiveness. The Background: Section 1106(b) of the CARES Act famously provides for potential forgiveness in a maximum amount equal to “the sum of [eligible] costs incurred and payments made during the covered [8-week] period.” There previously was only scant guidance on how to tie the covered costs to the 8-week period, or even whether a recipient should apply a cash method or accrual method in so doing...

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The PPP Litigation Wave Is Coming: Anticipated "Qui Tam" Lawsuits Under the False Claims Act
Verrill, May 2020

Many businesses and other borrowers, such as nonprofit organizations, that received Paycheck Protection Program (PPP) loans are now several weeks into disbursing their PPP loans for payroll, mortgage or lease payments, and utility payments. Businesses submitted applications to obtain their PPP loans in which a representative of the business made a number of certifications, including a certification that the loan was “necessary to support ongoing operations.” At some point in the future, many of these businesses will attempt to have some, or all, of the loans forgiven...

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FDA Updates its Guidance on Conducting Clinical Trials During COVID-19 Public Health Emergency
Verrill, April 2020

On April 16, 2020, the U.S. Food & Drug Administration (“FDA”) again updated its guidance on the “Conduct of Clinical Trials of Medical Products during COVID-19 Public Health Emergency,” adding seven new questions and answers to the guidance’s appendix. To learn more about the FDA’s guidance, please see our prior alerts here and here...

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