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Andrew Kugler is a Government practice lawyer.  He provides strategic advice to public, private and nonprofit clients, with a particular focus on health care, environmental, goods movement and technology issues.

Andrew helps clients craft legislative strategies and interface with government officials and agencies at the local, state and federal levels.  This work often requires him to draft legislative bills and amendments and to testify before legislatures and regulatory agencies across the country.

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While the second round of Paycheck Protection Program (“PPP”) funding remains available for new applicants, the first round is about to enter a new phase—loan forgiveness. Under the PPP, up to the full amount of the loan may be forgiven if the borrower spends proceeds on eligible payroll, mortgage, rent, and utilities expenses in the eight weeks following loan origination (subject to certain limitations, including that not more than 25% of forgiveness may be based on eligible non-payroll expenses). Forgiveness will be reduced for employer reductions in headcount and for certain reductions in salaries/wages in excess of 25% for any employee making less than $100,000 on an annualized basis during the eight-week period as compared with pre-COVID-19 conditions. To facilitate the forgiveness process, the SBA has now issued a PPP Forgiveness Application (SBA Form 3508). Borrowers that plan to seek forgiveness should carefully review the form and its instructions in advance of submission to their lenders or current servicers.

Continue Reading US SBA Paycheck Protection Program (PPP) Forgiveness Application

Today, just one day before the safe-harbor deadline for returning Paycheck Protection Program (PPP) loans, SBA released new guidance (FAQ # 46) on the good-faith certification of economic uncertainty. While this new guidance does not provide the clarity that many borrowers were seeking, it appears to reduce the risks associated with this certification by adopting a new safe harbor for loans under $2 million and limiting the potential penalties for loans above $2 million.

Continue Reading New SBA Guidance May Reduce the Risks to Borrowers Making the Certification of Necessity for Paycheck Protection Program Loans

After $349 billion in paycheck protection program (“PPP”) loans were exhausted in just 13 days, the U.S. Senate today enacted legislation to provide additional funding for the program, including at least $60 billion set aside for smaller banks and lenders. The legislation does not alter the general eligibility, affiliation, forgiveness, repayment and loan requirements; but merely provides additional funding.

Specifically, the legislation increases PPP funding by $310 billion, including $250 billion accessible to all eligible lenders and borrowers, $30 billion set aside for loans made by Insured Depository Institutions and Credit Unions with consolidated assets between $10-$50 billion, and an additional $30 billion set aside for loans made by Community Financial Institutions, Small Insured Depository Institutions and Credit Unions with consolidated assets under $10 billion.

Continue Reading US Senate Enacts Legislation to Extend the Paycheck Protection Program

The Small Business Administration (SBA) released an interim final rule on the evening of April 2, 2020, outlining key provisions of the SBA’s Paycheck Protection Program (PPP) and the provisions of the CARES Act relating to loan forgiveness. The rule is effective immediately.

Continue reading on Mayer Brown’s Retained Interest blog.


If you

What is the Paycheck Protection Program?

  • The Paycheck Protection Program authorizes up to $349 billion in forgivable loans for small businesses to pay their employees and meet certain covered expenses during the COVID-19 crisis.

Who can apply?

  • All businesses with 500 or fewer employees can apply, including sole proprietorships, self-employed individuals, and independent contractors. Hotel and food service businesses and certain franchises with more than 500 employees may still be eligible if they have no more than 500 employees per physical location. Businesses with more than 500 employees may also be eligible if they meet applicable SBA-employee-based size standards for their industry. More information on those standards can be found at–table-size-standards.

Continue Reading Paycheck Protection Program FAQs for Small Businesses

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law.

Among other things, the CARES Act creates the “Paycheck Protection Program,” which provides up to $349 billion to expand the Small Business Administration’s (SBA’s) existing 7(a) loan program to support new loan guarantees and subsidies.

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