News

On June 6, the Senate approved the version of the Paycheck Protection Program Flexibility Act (Flexibility Act) as adopted by the House of Representatives last week. The Flexibility Act provides additional flexibility to borrowers in using PPP loan proceeds and qualifying for forgiveness. The bill is now on its way to President Donald Trump for his signature.

The Department of Labor (DOL) recently approved a safe harbor method for retirement plan administrators to use electronic media, as a default, to furnish information to participants and beneficiaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). This new safe harbor method (New Electronic Disclosure Method) has very specific requirements that plan administrators must follow in order to provide participants and beneficiaries with electronic ERISA disclosures. The New Electronic Disclosure Method is in addition to the prior electronic disclosure option established by the DOL in 2002, but it generally allows electronic disclosure to more individuals.

Attorneys Jamie Huffman Jones and Michael McCarty Harrison have been elected to the Arkansas Bar Association’s inaugural Board of Trustees. The board, which consists of 20 attorneys, will officially take office next week during the Arkansas Bar Association’s Annual Meeting.

On May 28, 2020, the House of Representatives passed the Paycheck Protection Program Flexibility Act (Flexibility Act) by a vote of 417 to 1. The Act provides additional flexibility to borrowers in using PPP loan proceeds and qualifying for forgiveness. The Senate is expected to consider the legislation later this week although a competing bill is also pending in the Senate.

The Small Business Administration (SBA) recently issued a Loan Forgiveness Application (Form 3508) for borrowers with Paycheck Protection Loans. Below is a summary of some of the key considerations, issues and questions as borrowers and lenders work through the forgiveness process.

With the Thursday, May 14 deadline for repayment of Paycheck Protection Program loans under the previously announced safe harbor looming, earlier today the U.S. Small Business Administration issued FAQ #46 to address how it will apply the required borrower certification regarding the need for a PPP loan. The CARES Act requires that borrower’s certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

When and if students across America return to campus this fall, new regulations will apply under Federal law regarding Title IX protections for survivors of sexual misconduct. These regulations seek to restore due process in campus proceedings to ensure all students can pursue an education free from sex discrimination. This historic action, which was announced by the United States Secretary of Education, Betsy DeVos, seeks to define sexual harassment, including sexual assault, as unlawful sexual discrimination. Schools and institutions subject to the Title IX regulation will be held accountable for failure to respond equitably and promptly to sexual misconduct incidents and must ensure a more reliable adjudication process that is fair to all students.