The purpose of this article is to answer certain frequently asked questions regarding the Paycheck Protection Program—the federal program that makes available $349 billion of forgivable loans to certain small businesses and entrepreneurs—and the corresponding loan forgiveness program enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) as further clarified by the Small Business Administration’s recent guidance.
In addition to the $349 billion Paycheck Protection Program (the “PPP”), the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) created a separate $17 billion program to help borrowers with existing loans.
The coronavirus pandemic and the “Stay at Home” orders issued by state and local authorities in an attempt to slow the spread of the virus have radically changed the business landscape, closing many businesses outright and drastically reducing the income of many more. Faced with these new realities, many business owners may wonder what remedies are provided by their business interruption coverage and how to avail themselves of those provisions. This article reviews some of the commercial property insurance provisions most applicable to COVID-19 related business interruption coverage claims, and identifies some strategies for making these coverage claims.
Navigating principles of force majeure, impossibility of performance and frustration of purpose. Throughout the country and across the globe, businesses and individuals are facing unique challenges presented by the COVID-19 pandemic and the limitations of movement imposed by governments in its wake. The economic impact has been tremendous.
In addition to the $349 billion Paycheck Protection Program (the “PPP”), the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) made $10 billion available to fund disaster relief loans and emergency grants under the Small Business Administration’s existing 7(b)(2) loan program (an “SBA 7(b)(2) loan”) and amended certain rules that apply to 7(b)(2) loans.