On March 15th, Law360 published an Expert Analysis authored by LRC attorneys Matthew McGuire and Howard Robertson, on How Companies Can Use Gov’t Funding Amid Bankruptcy.
In response to the COVID-19 pandemic Congress enacted the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan Act. Through the CARES Act and American Rescue Plan, Congress implemented the Paycheck Protection Program and the Restaurant Revitalization Fund, respectively. These programs enabled small businesses to obtain PPP loans guaranteed by the Small Business Administration or restaurants to receive RRF grants of up to $10 million. While these programs were intended to assist distressed businesses during the pandemic, bankrupt businesses were essentially precluded from participating.
If you have any questions or would like to learn more, please contact Matt or Howard at Landis Rath & Cobb.