KMK Law Corporate & Securities Blog

M&A practitioners must take into account the events surrounding the Russian invasion of Ukraine and the accompanying international unrest when contemplating a proposed transaction.  These events will impact M&A transactions both in the short term and the long term.  With the situation unfolding and changing day to day, potential buyers and sellers should consult counsel on how the Russia and Ukraine escalation will affect their business today, and how it may affect their business operations going forward.  Below is a summary of topics to consider.

Earlier today, the Small Business Administration (“SBA”) published a new Interim Final Rule (“IFR”) which limits the amount of Paycheck Protection Program (“PPP”) loans a “single corporate group” may receive to $20 million in total. This limitation appears to apply only to loan disbursements occurring after April 30, 2020, but borrowers should be aware of the limitation and its interplay with other recent SBA guidance.

On March 19, 2020, the SBA approved Ohio’s application to qualify for the Economic Injury Disaster Loan Program. Small businesses in Ohio may now apply directly to the SBA for low interest working capital loans of up to $2 million.

As many businesses enter uncharted territory as the coronavirus pandemic reaches new heights, we have received numerous inquiries regarding the Economic Injury Disaster Loan Program. This update will address three questions: (1) When will the funds be available to Ohio businesses under the Economic Injury Disaster Loan Program, (2) Who classifies as a “small business?” and (3) is collateral required?  

On March 15, 2020, Governor Mike DeWine and Lieutenant Governor Jon Husted announced that the Ohio Development Services Agency (“ODSA”) has started the process to make low interest, long term working capital loans from the U.S. Small Business Administration (the “SBA”) available to Ohio businesses and non-profits that have been severely impacted by the coronavirus (“COVID-19”) pandemic.