What Does the PPP Loan Standard of Necessity Mean for My Business?


CLE credits earned: 1 GENERAL (or 1 LAW & LEGAL for WA state)

On April 28, U.S. Treasury Secretary Steven Mnuchin told large companies they should “apologize” for taking Paycheck Protection Program loans. He promised audits of PPP loans over $2 million, and he threatened criminal liability for false certifications of eligibility. This loan program was established by the Coronavirus Aid, Relief and Economic Security, or CARES, Act, enacted March 27, and it is administered by the Small Business Administration. While the PPP was designed primarily to help small businesses retain employees on their payrolls during the coronavirus outbreak, the CARES Act provides several exceptions allowing additional businesses to participate. Applicants for PPP loans are required to make several certifications including: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” This webinar will help attorneys understand the rules governing eligibility for PPP loans before the safe harbor period ends on May 14.

Key topics to be discussed:

•     Overview of the Paycheck Protection Program (PPP) established by the CARES Act, review of key interim rules and other guidance issued by the Trump Administration, including “safe harbor” for repaying PPP loans
•     Required certifications by applicants for PPP loans, with focus on certification that a PPP loan is necessary to support the applicant’s ongoing operations
•     Potential liability for false certifications under the False Claims Act, overview of FCA damages and penalties
•     Considerations for documenting a PPP borrower’s good faith determination of necessity

Date / Time: May 15, 2020

•   4:00 pm – 5:00 pm Eastern
•   3:00 pm – 4:00 pm Central
•   2:00 pm – 3:00 pm Mountain
•   1:00 pm – 2:00 pm Pacific

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•   Live Video Broadcast/Re-Broadcast: Watch Program “live” in real-time, must sign-in and watch program on date and time set above. May ask questions during presentation via chat box. Qualifies for “live” CLE credit.
•   On-Demand Video: Access CLE 24/7 via on-demand library and watch program anytime. Qualifies for self-study CLE credit. On-demand versions are made available 5 business days after the original recording date and are view-able for up to one year.

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Original Broadcast Date: May 12, 2020

Caroline Blitzer Phillips advises public and private companies engaged in mergers and acquisitions. In addition, she represents private equity firms with respect to their investments in creating and growing their portfolio companies. Caroline is also active in advising both corporate investors and private equity firms on the formation of development joint ventures.
In addition to her client work, Caroline is a co-chair of V&E’s Women’s Initiative in the firm’s New York office. She serves on the board of trustees of the LSU Law John P. Laborde Energy Law Center.
Adrianne Goins resolves disputes for clients. Her practice focuses on commercial arbitration and government contracts disputes. Adrianne has practiced law for over twenty years and is experienced in all phases of dispute resolution, from case assessment and discovery, to motions practice, trial preparation, mediation, and hearings before arbitration and administrative panels. Adrianne is a AAA commercial arbitrator and a member of the AAA’s specialty panel on aviation, aerospace and national security.
Daniel Graham is the Vice-Chair of V&E’s Government Contracts practice group and serves as the hiring partner for V&E’s Washington, D.C. office. Highly regarded in government contracts litigation, Dan has nearly two decades of experience assisting clients on bid protests, Contract Dispute Act appeals, prime and subcontractor disputes and commercial litigation for clients across industry sectors.
Chambers USA has named Dan a leading lawyer for business in government contracts. A client quoted by Chambers said, “He is a star in this field.” The client added, “No task is too large or too small for Dan to take on and excel at. He has provided advice which has resulted in several great outcomes” (2019).
Brittany Sakowitz concentrates her practice on mergers and acquisitions and private equity. She has counseled private equity investors, their portfolio companies, and other public and private companies in connection with mergers, acquisitions, dispositions, joint ventures, offerings of equity and debt securities, and general corporate governance matters. Brittany has advised clients across a broad range of industries, including energy (upstream, midstream, oilfield services, power, and marketing and trading), consumer products, and financial services.

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Introduction and Overview of Paycheck Protection Program – Caroline Blitzer Phillips 2:00-2:15
The Standard for Necessity Under the CARES Act – Adrianne Goins 2:15-2:30
Potential Liability under the False Claims Act – Dan Graham 2:30-2:45
Documenting the Good Faith Determination of Necessity – Brittany Sakowitz 2:45-3:00