June 2, 2020
On May 31, 2020, West End Bank, S.B., Richmond, Indiana, and its parent company, West End Indiana Bancshares, Inc., completed a purchase and assumption transaction with Three Rivers Federal Credit Union ("3Rivers"), Fort Wayne, Indiana, in which 3Rivers has acquired the assets and assumed the liabilities of West End Bank in an all-cash transaction. It is estimated that each West End Indiana Bancshares stockholder will receive between $35.00 and $37.00 per share of West End Indiana Bancshares common stock owned by such stockholder following the merger of West End Bank into West End Indiana Bancshares and the dissolution of West End Indiana Bancshares.
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May 29, 2020
To our clients and friends:
On May 23, 2020, the U.S. Small Business Administration ("SBA") issued two interim final rules (the “Interim Final Rules”) related to the forgiveness of loans originated under the SBA’s Paycheck Protection Program (the “PPP”). The first Interim Final Rule provides the requirements for loan forgiveness, which includes instructions for properly completing the PPP Loan Forgiveness Application for borrowers. The second Interim Final Rule describes the SBA’s procedures for reviewing PPP loan and forgiveness applications.
Our Alert summarizes both sets of Interim Final Rules, which are effective immediately. Yesterday, the House of Representatives passed a bipartisan bill that would change key PPP loan forgiveness provisions. The Senate has put forth a similar bill, but it has not yet passed. As a result, it is very likely that the Interim Final Rules will be further modified. We are closely monitoring these developments and will provide updates as appropriate.
Our Alert is available here.
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May 15, 2020
To our clients and friends:
On May 13, 2020, the U.S. Small Business Administration ("SBA"), in consultation with the U.S. Department of the Treasury, updated their Frequently Asked Questions Memorandum (the “FAQ”) concerning the Paycheck Protection Program (the "PPP"). Most significantly, the FAQ: (1) clarifies that a safe harbor is provided regarding the SBA’s review of borrower necessity certifications of PPP loan requests of $2.0 million or less; and (2) notes that the PPP amnesty provision that would allow borrowers to repay their PPP loans in full without penalty upon the determination that their necessity certifications are no longer valid was extended to May 18, 2020.
Our Alert is available here.
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May 11, 2020
Luse Gorman, PC is pleased to announce that in 2019 we were the No. 1 legal advisor in the nation for common stock offerings by financial institutions, as reported by S&P Global Market Intelligence. Luse Gorman completed almost one-third of all stock offerings by financial institutions in 2019, three times more than any other legal advisor. We served as issuer’s counsel in connection with a range of equity offerings, including firm commitment IPOs and private placements of common equity. This was the 14th consecutive year that Luse Gorman was ranked among the top 3 law firms with respect to common stock offerings by financial institutions.
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May 8, 2020
To our clients and friends:
Last week, the U.S. Small Business Administration (“SBA”) resumed processing loan applications through its Paycheck Protection Program (the “PPP") previously established by the CARES Act due to the additional $310 billion in PPP funding authorized by Congress.
Our Alert provides an update on the PPP based upon a Frequently Asked Question Memorandum, updated as of May 6, 2020, issued by the U.S. Department of the Treasury and the SBA. Most significantly, it provides that: (1) the SBA will review individual PPP loans in excess of $2 million to further ensure PPP loans are limited to eligible borrowers in need; and (2) the PPP amnesty provision that would allow borrowers to repay their PPP loans in full without penalty upon a determination that their certification of “necessity” is no longer valid has been extended to May 14, 2020.
Our Alert is available here.
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