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Today, the U.S. Small Business Association ("SBA") stopped accepting applications for funding under the Paycheck Protection Program ("PPP"), as described under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The SBA stated that the $349 billion in funding provided by Congress under the CARES Act had been exhausted after it had processed over 1.6 million loan applications in the first weeks of the program.


While the SBA has urged Congress to increase the available funding for the program, no statement has been made suggested that such an increase will or will not occur.


Budletter will continue to monitor the situation as it further develops.


© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

On Thursday, six cannabis industry groups wrote a letter to state treasures and governors asking for the creation of a state-based lending or loan guarantee program. The letter argues that this necessary to fill the gap that cannabis businesses are left in without access to the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDLs”).


The PPP and EIDLs were created under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, however, the SBA has stated that cannabis businesses are not eligible for SBA-funded services except for hemp and hemp-related products exempted under the Agriculture Improvement Act of 2018.


More information on the letter can be found here.


Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Kieran Edstrom is a third-year law student at the University of Denver Sturm College of Law and a law clerk for Wysocki Law Group, P.C.

© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

Updated: Apr 10

Today, Wells Fargo has announced that it is no longer accepting applications for the Paycheck Protection Program ("PPP"), as described under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Any requests for loans submitted after April 5 will not be considered, according to the bank. The application period under the PPP program's guidelines is intended to run until June, 2020.


As of the date of this article, Wells Fargo has indicated that it had received applications that total more than $10 billion, the maximum the bank planned to offer under the program. This limitation is partly due to the Federal Reserve's cap imposed in 2018 due to discoveries of consumer abuses caused by Wells Fargo. The bank has currently petitioned the Federal Reserve to temporarily lift this cap, however no such change has been made nor is expected.


Budletter will continue to monitor the situation and provide updates as they arise.



© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

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