The Paycheck Protection Program (PPP) was created as part of the $2 trillion stimulus package known as the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. This program provides $349,000,000 in federally backed loans to businesses to meet financial operational costs like payroll, mortgage interest payments, rent, and utility payments as an incentive to encourage businesses to retain employees during this pandemic.
Small businesses are struggling economically in light of the COVID-19 pandemic. Many businesses have closed as a result of shelter-in-place orders, and even in states less severely affected by the virus, many non-essential businesses have closed. Further, companies that have remained open are dealing with the fallout stemming from the public’s fear of the spread of the disease. Due to the volatility of the stock market, home builders and others in the construction industry may experience a slowdown in customers seeking to build new homes or renovate as a result of their shrinking investment accounts. Likewise, many other industries are suffering from curtailed discretionary spending and decreased consumer confidence. Employees have also been affected, with businesses forced into schedule reductions, pay cuts and layoffs due to virus-related slowdowns, as well as mandatory or voluntary closures.
From case law requiring notice for contingent beneficiaries to new federal rules applicable to joint employers, we have recently seen some significant developments in estate planning and business law. To ensure that you stay abreast of these legal changes, we’ve highlighted a few noteworthy developments and analyzed how they may impact your estate planning and business law practice.