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Webinar, "CARES Act Paycheck Protection Program: From the Secured Lender Perspective"

April 17, 2020 12:00 PM to 1:00 PM (Eastern Daylight Time)

Thank you to our webinar sponsor

Please note: registration ends at 10:00 a.m. ET on the day of the webinar. To register after the cutoff, contact Jeff Walsh at jwalsh@sfnet.com.

Description

With the adoption of the CARES Act in response to the COVID-19 pandemic, there are critical implications for both borrowers and lenders. The expansion of Section 7(a) of the Small Business Act through the Paycheck Protection Program (PPP) included in the CARES Act is keenly relevant to the secured finance community as a source of emergency financing for many of its borrowers and some lenders.

But with the rapid roll-out of the program, including the ongoing issuance of rules and guidance from the Small Business Administration (SBA) and the Department of the Treasury, and the relationship between them, there are significant challenges for understanding how it all works. This webinar will be a discussion of the PPP’s interpretations, its effectiveness thus far, its incentives for lenders, and what the COVID-19 crisis will mean for the future of secured small businesses lending.

The following critical questions will be addressed:

Who is eligible to receive loans under the PPP? Does it have to be a “small business concern” under Section 3 of the Small Business Act or just have less than 500 employees? Who gets counted as an “employee” for purposes of the program?
Is the PPP delivering on its intentions? (review of the key data and headlines from the active lenders)
Status on the latest CARES Act interpretations for the PPP and its other lending programs?
What does a secured lender need to think about right now?
What are the PPP’s implications on the incentives for small business lending?
Where will the SBA’s program guarantees finally settle amid within the universe of secured lending to small businesses?
Do employees at “affiliates” get included in the number of employees under the SBA’s “affiliation” rules? How does a business know who is an “affiliate”? What does this mean for borrowers owned by private equity firms or that are family owned?
Where can a business apply? Can a business only get a PPP loan if it has an existing relationship with a bank?
What does a secured lender to a borrower that is applying for a PPP loan need to think about?
How are the banks dealing with the process of managing the applications? What does the SBA say they need to do and what are they doing? How does this affect getting the loan?
Once a borrower gets the loan, what does it need to do?
Can a company apply for a PPP loan and a loan under the Economic Injury Disaster Loan Program? What are some of the differences between the two programs?

Panelists:
David Morse, Otterbourg
Matthew Knoll, Ernst & Young
Don Lewis, Eastern Bank

Registration fees are waived for SFNet members. However, if you would like to support our continuing efforts to bring timely, relevant information to our network, you will find an option to pay $50 in the registration window.