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Category Archives: Miscellaneous

Paycheck Protection Program: SBA report on destination of funds through 4/16/20

Author By Christopher P. FinneyPosted on

The SBA burned through $342 billion in Paycheck Protection Program’s (“PPP”) loan funds in just over a week. And of course it ran out of funds long before all applications were processed, leaving many businesspersons waiting to see if the program will be properly and fully funded (we think it will).

Where did the money go?

Well, the SBA has issued a good and short PowerPoint presentation on the destination of the loaned funds to date.  That is here.

If you need help accessing PPP funds or the companion Emergency Income Disaster Loan funds, please contact Rebecca L. Simpson (513-797-2856).

Paycheck Protection Program: Have you applied?

Author By Christopher P. FinneyPosted on

Over the weekend, I spoke with about a dozen 1099 or business-owner clients who (a) either still did not know about the Paycheck Protection Program or (b) did not intend to apply for various reasons.  Some discussion of that.

  1. If you don’t know about the program, educate yourself. It is broad and generous. It encompasses almost every sole proprietor, 1099 contractor and business owner in the nation.  Read about it generally here and watch this webinar for employers with W-2 employees and this webinar aimed primarily at sole proprietors and 1099 contractors.
  2. Do I have to suffer closure or severe economic damage under the COVID-19 crisis  to be eligible? No. This program makes virtually no distinction between those severely impacted and those still operating “normally.” You do need to certify some impact from the COVID-19 crisis.
  3. Isn’t this just another SBA loan program with lots of paperwork and loan fees? No, not at all.  (a) First, it is a “forgivable loan.” (b) The primary condition is that you must continue to employ your employees for 8 weeks (or call them back if you already laid them off) after the loan is made. (c) If you meet that and a few other simple conditions, the “loan” becomes a grant. (d) It is east to apply. (e) There are no fees. (f) There is no loan guarantee.  (g) Even creditworthiness is not considered. This program is designed quickly to get cash into the hands of businesspersons so they can maintain their payroll and avoid bankruptcy.
  4. How do I apply? Call your bank.  If you need more help, contact Rebecca L. Simpson of our office (513.797.2856).  Candidly, it is fairly easy and straightforward.
  5. But I read the program already is out of money? Yes, this is true, but it appears likely that Congress is poised to authorize another $300 billion this week.  Our view is the program will be fully funded until every eligible business which applies has been funded.
  6. Does the program apply to churches and other non-profits?  The program does have special rules for churches, but it generally applies to all 501-C3s and C-19s (veterans organizations).
  7. I don’t need the money; let someone else in need have the funds. This is certainly a justification for not applying, just so you have thought this through for yourself and your business.  When this program is gone, we see it as highly unlikely it will be renewed on such generous terms.

Every businessperson has their hands full right now, navigating the shoals of uncertainty and change the COVID crisis has presented, but this program almost certainly is well worth your time and attention.

Paycheck Protection Program: SBA runs out of authorized funds and stops taking applications

Author By Christopher P. FinneyPosted on

The stated desire of Congress and the Administration in the Paycheck Protection Program (“PPP”) has been to get money into the hands of business owners — and keep workers off the unemployment line — absolutely as quickly as possible.

But that hasn’t prevented the endless delays and bickering between the democrat House and the GOP Senate in getting full appropriation for the program approved.

Read here that the Small Business Administration website now reads that it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”

Watch this blog for further updates and contact Rebecca L. Simpson (513.797.2856) for more information on this program.  She is keeping updated on the rules and the daily developments.

How Will Coronavirus Affect Contractual Relationships and Obligations?

Author By Todd McMurtryPosted on

The coronavirus pandemic has disrupted practically every aspect of American life. Whether closed by government order or by concerns about public safety, millions of businesses around the country have seen their operations come to a halt. Despite the overwhelming effect of COVID-19, it is not a certainty that an “Act of God” clause in a business contract will enable a party to ignore its obligations under the agreement.

Many contracts include force majeure provisions that account for situations where an outside event prevents a signatory from fulfilling contractual duties. If you’re thinking of relying on this type of provision to justify nonperformance or if a party to an agreement is invoking a COVID-19-related Act of God clause against you, here are some factors to consider:

  • Terms of the agreement — As in any contract interpretation matter, it’s critical to examine the document to see if a pandemic is mentioned specifically or generally as an event that would affect the parties’ rights. For example, the collective bargaining agreement between the National Basketball Association and its players’ union specifically refers to “epidemics” as a force majeure event that allows the league’s owners to withhold salary and potentially revoke the entire agreement.
  • Impossibility vs. difficulty — Many unexpected things can drastically alter the feasibility of meeting one’s contractual obligations. However, just because something has become more difficult, economically impractical or even dangerous, that does not justify the use of an Act of God exception. Even in a relatively recent case involving a highly contagious disease, Morocco wasn’t able to invoke force majeure to escape liability after it canceled a 2015 soccer tournament while the Ebola virus afflicted West Africa. Though holding the tournament might have been unwise and costly, the Court of Arbitration for Sport ruled that it was not impossible.
  • Foreseeability — Another consideration when a party seeks to defend its nonperformance by claiming an Act of God is whether the circumstance was foreseeable. Financial downturns (even severe ones), shipping problems, material shortages and other situations affecting contract fulfillment are usually considered foreseeable. In fact, some agreements specifically exclude common problems that might lead a contract partner to invoke a force majeure 

The unique nature of the COVID-19 pandemic has thrust all of America into uncertainty. Counting on Act of God language to relieve you from your legal duties might not be a sure bet, even if you believe you have a compelling case. Taking prompt steps to communicate with contract partners might be a better way to reach a solution that acknowledges the harm that was done and modifies certain rights and obligations. By working with a skillful, creative business lawyer, you might be able to avoid a serious conflict over how force majeure is defined in your situation. If consensus cannot be reached, your attorney can advise whether you might succeed in a legal action.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

Tips for Defending Your Business Reputation Online

Author By Todd McMurtryPosted on

In cyberspace, a single negative review, tweet or Facebook post can inflict damage on a business that is difficult to undo. Effectively defending your company’s online reputation demands taking a proactive role rather than waiting until your company is attacked to jump into crisis-management mode. Here are some preventative steps you can take immediately:

  • Control your brand — Registering a website domain in your business name and doing the same on social media platforms helps prevent others from posing as your company online.
  • Publish your own content — If someone Googles your company, negative information posted by others may appear at the top of the search results. By publishing blogs, articles, videos, social media messages and other content that is in line with your brand, you can increase the likelihood of your posts appearing high in search rankings.
  • Encourage and respond to posts and reviews — Develop a record of positive repute by asking satisfied customers and other business contacts to post about or review your products or services online. Responding to positive feedback with thanks and encouragement can inspire more people to voice their appreciation. If someone writes a negative post, responding respectfully with your side of the story demonstrates candor and concern for the truth.
  • Establish social media and communications policies — Guidelines should be put in place so that anyone who communicates on behalf of your company on social media or anywhere else only should have a clear understanding of which topics should be discussed, what should be kept private and how customer service issues should be handled.
  • Follow online conversations about your company —By keeping aware of the reports and opinions people publish about your company, you can compile positive feedback while also catching negative impressions when they happen. Among the means available are setting up alerts via Google or using social media tracking software.
  • Know what to do in a crisis — Plan for the worst by devising a crisis management plan. It should designate who at your company will be in charge of speaking for the company in the event that negative information online poses significant harm. It should also address who should be in charge of developing and implementing damage control measures.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

Finney Law Firm News: Staying on top of of the COVID-19 crisis by the numbers

Author By Christopher P. FinneyPosted on

As our clients have noted from six years and a half years of our work to “Make a Difference,” Finney Law Firm  is actively working to assure that our attorneys are constantly up to date on developments in the law, and then impart that information to clients and the public with blog entries, e-newsletters, seminars, webinars and media appearances.

Our performance during the COVID-19 crisis has met and exceeded that standard.  And, because our clients hunger for information to help them to weather this unprecedented storm, the response has been overwhelming.

Here is our performance by the numbers since the beginning of March:

  • 28 COVID-related blog entries with critical legal updates for clients, including information on the PPP and EIDL programs from the SBA.
  • Those blog entries have had more than 6,300 “reads” since the crisis began.
  • 6 major Constant Contact e-mail blasts with important COVID-19 legal developments.
  • More than 13,250 “opens” of those emailed newsletters, a record number in one month.  We are seeing that the information is so valuable that there are a record number of “forwards” from clients to their contacts with our information, and those “forwards” are opening and reading the communications as well.
  • We have had 8 major TV and radio appearances relating to COVID-19 issues.
  • We have gotten calls from all over the nation for help on the PPP program from the SBA.
  • We have done or will do 4 webinars on the PPP program. Between the webinar live attendees and those watching the recordings, we will have reached more than 1,000 participants.
  • We have retained exclusive relationships with 1 Ohio e-notary and 1 Kentucky e-notary to become one of the first title companies to be able to do entirely electronic, remote closings over the internet through Ivy Pointe Title.

All of this is designed to assure we are as effective as we can be in serving you, by understanding the law, which is developing daily, by developing the contacts to achieve your objectives, and by imparting that knowledge in a usable format so you can implement to win on legal and economic battlefields that are daily emerging.

I congratulate and thank our team — lawyers, paralegals and staff — for contributing to this area of service to our clients.  And thank our clients — existing and new — for recognizing this sophisticated and cutting-edge approach to the practice of law for their benefit.

Let me know personally how the Finney Law Firm can help you to weather this storm.  My email is Chris@FinneyLawFirm.Com and my phone numbers are 513.943.6655 (o) and 513.720.2996 (c).

Paycheck Protection Program: And…more problems in paradise at the SBA on the software side

Author By Christopher P. FinneyPosted on

Look, the Paycheck Protection Program is enormous, offering help to every small business in America with W-2 employees and the administration and Congress asked them to launch with six days’ lead time. What did you expect?

Yes, there are problems with the launch.  But you are all sitting in lock-down at home anyway.  We counsel patience.  The President and Congress are united in their desire to get this money out where it is needed.

Read more here.

Attorney Rebecca L. Simpson of the Finney Law Firm has carefully studied the PPP and the Emergency Income Disaster Loans (“EIDL”) to help our small business clients access these funds.  Feel free to call her at 513.797.2856 if you have questions about these programs or need help accessing PPP or EIDL funds.

Paycheck Protection Program: Wells Fargo stops accepting applications

Author By Christopher P. FinneyPosted on

The Payroll Protection Program (“PPP”) is easily the most generous small business support grant/loan program in the history of the nation.  Essentially, it is a lifeline to hundreds of thousands of small businesses (under 500 employees) nationwide in the midst of the economic crisis borne out of the COVID-19 pandemic.

It launched Friday, April 3, 2020, and on Sunday April 5, Wells Fargo & Company announced that it has “reached its capacity of $10 billion to lend under the PPP.” According to FastCompany.Com, “the bank has only been focusing on nonprofits or companies with 50 employees or less,” the statement read. From Fast Company and Wells:

“Given the exceptionally high volume of requests we have already received, we will not be able to accept any additional requests for a loan through the Paycheck Protection Program. We will review all expressions of interest submitted by customers via our online form through April 5 and provide updates in the coming days.”

Many of our clients have wanted to apply quickly to be “first in line” for the grants, and successfully completed their on-line application with various banks.  We have helped them to quickly apply, but generally counseled patience inasmuch as the program claims to extend through the end of 2020.  Thus, we did not expect the grant/loan program would be cut off so quickly and callously by one of the nation’s biggest lenders.  48 hours of applications, which really was about eight business hours, and “poof” they are out of the game and leave their regular customers hanging.

To make matters worse, most banks with which we speak say they are limiting PPP applications to existing customers only. So, Wells Fargo customers may need to either wait or flail around for days, weeks or months to find another lender to process their perfectly compliant PPP application.

We continue to work with clients who are continuing to process PPP applications with PNC, US Bank, Fifth Third Bank, Huntington Bank and other major and smaller lenders.  If you are a Wells Fargo customer who is having difficulties applying for a PPP loan, contact us to help identify a cooperative and open lender.

Attorney Rebecca L. Simpson of the Finney Law Firm has carefully studied the PPP and the Emergency Income Disaster Loans (“EIDL”) to help our small business clients access these funds.  Feel free to call her at 513.797.2856 if you have questions about these programs or need help accessing PPP or EIDL funds.

Stay safe, America. We will get through this together.

Paycheck Protection Program: Independent contractors and rocky launch?

Author By Christopher P. FinneyPosted on

Two updates this morning on the SBA’s important and potentially very helpful Paycheck Protection Program for small businesses:

  1. The SBA’s Final Interim Rule issued Thursday night has this guidance on the difficult question of 1099 contractors:

Q: Do independent contractors count as employees for purposes of PPP loan calculations?

A. No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation

2.  There have been a series of doom and gloom articles about the SBA’s rollout and large Banks’ reaction to that, such as this article from Politico, and this one from Forbes. We counsel patience. The government is rolling out an unprecedented amount of money for small businesses in the coming 30-60 days ad we suspect they will fully fund that generous program now that they have started it.

Finally, Rebecca L. Simpson (513.797.6227) from this office is devoting her practice for the coming weeks to serving clients on the PPP and EIDL programs. If she can be of assistance, please contact her directly.

Yes, we do video: Chris Finney discusses “early occupancy” in residential contracts with Ken Meyers of Option Financial

Author By Christopher P. FinneyPosted on

Ken Meyers of Ohio Financial (513.328.1341) has invited me to do with him a series of video chats on issues of importance in the residential real estate marketplace.  We will be posting them here.

This is the first one on the topic of the typically unwise practice of allowing a buyer to have early occupancy of a property before a closing has taken place. The short answer is: don’t do it. Ever.

That first video entry is linked here.  Here also is a blog entry I have written on the same topic.

Ken is a residential mortgage lender with whom our team has had great experiences and we certainly would recommend him for your consideration.

Let me (513.943.6655) know if you have considerations of early occupancy, you need us to document an agreement for early occupancy, or we can help extricate you from a situation of early occupancy.

 

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