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to repay their PPP loans in full without penalty upon a determination that their certification of “necessity” is no longer valid has been extended to May 14, 2020.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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May 7, 2020
On April 24, 2020, Northwest Bancshares, Inc., Warren, Pennsylvania, the holding company for Northwest Bank, successfully completed its acquisition of MutualFirst Financial, Inc., Muncie, Indiana, the holding company for MutualBank. With $2.1 billion in assets, MutualBank operated 36 full-service offices in Indiana.
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April 30, 2020
We are pleased to announce that Luse Gorman, PC has again received the No. 1 National Ranking as legal counsel for mutual-to-stock conversions and mutual holding company transactions, as reported by S&P Global Market Intelligence, for transactions completed in 2019. Luse Gorman has been the No. 1 ranked law firm for mutual-to-stock conversions and mutual holding company stock offerings each year for over 15 years. We note that mutual institutions continue to have an interest in mutual holding company stock offerings as a vehicle for raising capital incrementally while preserving control.
Luse Gorman is the leading legal advisor nationally to financial institutions that need corporate, securities and regulatory advice in their efforts to raise additional capital to support growth and profitability. We appreciate the continued support and confidence of our clients.
For more information about our law firm and to learn more about how your community bank can successfully complete a mutual-to-stock conversion or mutual holding company stock offering, please contact any of our partners listed below, or visit our website at www.luselaw.com or contact:
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April 28, 2020
To our clients and friends:
On April 23, 2020, the Paycheck Protection Program and Health Care Enhancement Act (the “PPP Enhancement Act”) was signed into law, which provides $310 billion in additional funding to the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (the “PPP”) previously established by the CARES Act. As a result, the SBA has resumed processing PPP loan applications as of yesterday.
Our Alert provides an update on the PPP based upon the PPP Enhancement Act and the latest rules and guidance issued by the U.S. Department of the Treasury (“Treasury”) and the SBA, including the SBA’s fourth interim final rule released on April 23, 2020 as a result of the new PPP funds and Treasury’s Frequently Asked Questions Memorandum for the PPP, updated as of April 26, 2020.
Our Alert is available here.
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April 17, 2020
Yesterday, the Small Business Administration (“SBA”) announced that no new applications for loans will be accepted under the Paycheck Protection Program (the “PPP”), which was authorized pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), because the processed PPP loan volume has reached the $349 billion limit under the CARES Act.
Assuming that Congress will authorize more PPP funding (which is expected), our Alert provides an update on the PPP based upon the latest rules and guidance issued by the U.S. Department of the Treasury and the SBA, including the SBA’s second interim final rule released on April 14, 2020.
Although there is bipartisan consensus in Congress to provide more funding for the PPP, it is possible that the eligibility criteria and administration of the PPP may change in consideration of any new funding. We are closely monitoring these developments and will provide updates to you as appropriate.
Our Alert is available here.
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