In addition to the SBA’s Payment Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), on April 9, 2020, the Federal Reserve announced that it was going to provide up to $2.3 trillion in loans to support the economy through various programs, including the Main Street Lending Program (“MSLP”). The MSLP will support credit flow to small and mid-sized businesses by providing support to businesses that were in good financial standing prior to the COVID-19 crisis. This is a new loan program authorized by the CARES Act. We will continue to update this summary as more information becomes available.
New IRS Guidance on Obtaining Refunds for Net Operating Loss Carrybacks, Corporate AMT Carryforward Credits and Filing Amended Returns for Partnerships
In a previous post to the Liskow website, we advised clients and friends that the CARES Act, P.L. 116-136, enacted modifications to the rules for the use of net operating losses (“NOLs”) and corporate alternative minimum tax carryforward credits (“AMT Carryforward Credits”) for tax years beginning after December 31, 2017 and before January 1, 2021. See, J. Bradford and J. Birdsong, CARES Act Makes Significant Changes to Four Key Business Tax Provisions Enacted in the Tax Cuts and Jobs Act of 2017.[1] The Internal Revenue Service (“IRS”) now has published guidance on how refunds attributable to the newly-permitted 5-year carryback of NOLs in section 172 of the Internal Revenue Code (the “Code”) and the accelerated use of AMT Carryforward Credits in section 53(e) of the Code can be obtained. The IRS also has published guidance allowing business entities classified as partnerships for federal income tax purposes to file amended partnership income tax returns, including Form 1065 and Schedule K-1, to help individual and corporate taxpayers who are partners in those partnerships take advantage of changes in the federal income tax law enacted in the CARES Act. Continue Reading
COVID-19 Lending Resources
Liskow & Lewis is committed to serving its clients as they adapt to the unprecedented economic consequences of the ongoing COVID-19 pandemic. As part of this commitment, the firm has created a COVID-19 Lending Resource page for the lending programs established by the CARES Act, which provides economic relief for small and medium firms, including non-profits. Click here for articles by Liskow attorneys, as well as helpful links to more information from the Treasury Department and the SBA.
Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses
Background
The Coronavirus Pandemic has wreaked havoc on small and mid-sized businesses (“SMBs”) throughout Texas and the rest of our country. Many SMBs have had to close their doors due to mandatory stay-at-home orders and other social distancing orders and requirements. The CARES Act and other recent legislation passed by Congress and signed into law by President Trump contain several programs designed to assist these businesses in their efforts to make it through the hardships of the next several months. But what about the longer-term capital needs for SMBs as the pandemic subsides and these businesses emerge from the mandatory stay-at-home and other orders and begin to move forward again?
Applying for a Loan under the Paycheck Protection Program (PPP)
Updated May 26, 2020
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, which provides for various economic stimulus measures, including a new loan program regulated by the U.S. Small Business Administration (SBA) called the Paycheck Protection Program (PPP). You can read more about the PPP and the other stimulus programs here.
Liskow & Lewis CARES Act Tax Analysis – Part II
On Friday, March 27, 2020, President Trump signed into law the CARES Act, which contains many provisions designed to mitigate the impact of the Coronavirus pandemic. Liskow & Lewis attorneys John T. Bradford and Jeffrey P. Birdsong wrote about four of those provisions which affected the implementation of the 2017 Tax Cuts and Jobs Act (“TCJA”) here. The following blog post walks through another round of changes to the Internal Revenue Code (“IRC”) contained in the CARES Act.
COVID-19 Federal Legislative Response
Day-to-day life has been dramatically impacted by the coronavirus disease 2019 (COVID-19), and many businesses have been forced to close or limit their service to slow the spread of COVID-19. In response, Congress has passed several pieces of legislation to assist individuals and businesses affected by the virus.
Supreme Court of Pennsylvania Weighs in on Hydraulic Fracturing and Subsurface Trespass
In January of this year, the Supreme Court of Pennsylvania tackled an issue that has been confronted by few other courts—whether the rule of capture precludes a claim for subsurface trespass due to hydraulic fracturing.[1]
Louisiana and Texas COVID-19 Stay-at-Home Orders and Effects on State Courts
This article was updated on April 14, 2020.
Day-to-day life has been dramatically impacted by the coronavirus disease 2019 (COVID-19), and many courts in Louisiana and Texas have been forced to close or limit operations in conjunction with stay-at-home orders. A brief discussion of how COVID-19 has affected Louisiana and Texas courts is discussed here.
CARES Act Makes Significant Changes to Four Key Business Tax Provisions Enacted in the Tax Cuts and Jobs Act of 2017
On Friday, March 27, 2020, President Trump signed into law the CARES Act, which contains many provisions designed to mitigate the impact of the Coronavirus pandemic on businesses. Those provisions include the following four significant changes to the business tax provisions contained in the 2017 Tax Cuts and Jobs Act.
