Senate Approves Additional Funds for Paycheck Protection Program

On Tuesday, April 21, 2020, the U.S. Senate passed H.R. 266, the “Paycheck Protection Program and Health Care Enhancement Act” by voice vote. The bill appropriates an additional $310 billion for the Paycheck Protection Program (PPP), which exhausted its initial $349 billion in funding within two weeks of Congress’ passage of the CARES Act. The bill also provided $60 billion for community banks and smaller lenders, $75 billion for hospitals, $25 billion for testing, and $60 billion for emergency disaster loans and grants.

The U.S. House of Representatives is expected to take up the bill on Thursday morning, April 23, 2020, as House lawmakers are expected to return to Washington for a recorded vote on that date. The President is expected to sign the bill shortly thereafter, thereby releasing the funds for additional lending to small businesses across the country.

The Paycheck Protection Program provides loans to small businesses under 500 employees. The loan obligation is eligible for complete forgiveness if loan proceeds are spent to support payroll costs, rent, and other qualified expenses. The amount of loan forgiveness is also not included in the taxable income of the borrower.

If a business has applied for the loan and did not receive funding due to the exhaustion of the program, they should contact their lender immediately to confirm their loan application is still active and any other pertinent details to get their Paycheck Protection Loan back on track.

Michael D. Walker is a business, tax and estate planning attorney who has worked with individuals and small to medium-sized businesses for nearly 30 years. A careful listener, Michael skillfully guides his clients to meet the wide variety of legal challenges they face in our current complex world.

SYK Seminar Series: Protecting Seniors with New Oregon Laws

 

 

Senate Bill 95, House Bill 2622 and FINRA Rules 2165 & 4512

What Oregon Securities Professionals, Financial Institutions and Trust Companies Need to Know

The Oregon Legislature passed Senate Bill 95 and House Bill 2622 to amend and create new law regarding reporting by certain securities professionals of suspected financial exploitation by others. For securities professionals, certain financial institutions and trust companies, the new bills allow discretionary temporary holds on disbursements and certain other account activity. FINRA Rules 2165 and 4512 create complementary requirements and discretionary holds for FINRA-registered brokers.

Fiduciary litigator Victoria Blachly and securities litigator/FINRA arbitrator Darlene Pasieczny explain how these new laws and rules seek to empower financial professionals to help their clients. Victoria and Darlene also will address capacity, red flags of potential financial abuse, and the reporting process for suspected exploitation.

To register, please contact us at events@samuelslaw.com or 503.226.2966.

Space is limited to the first 25 attendees to RSVP (required). Be sure to register soon to reserve your seat!

Lunch will be included with this free & informative presentation

2010 ESTATE TAX REPEAL STILL ON SCHEDULE!

On December 16, 2009, the Wall Street Journal reported that the Democrats’ attempt to extend the Federal Estate Tax exemption of $3.5 million into 2010 has been blocked by the Republicans. Senator Max Baucus is quoted as saying, “We clearly will work to do this retroactively, so that when the law is changed, it will have retroactive application.” 

The Republicans believe that the repeal should be allowed to take effect as provided under current law, and Senator John Kyl (R, Arizona) stated, “The problem doesn’t have to exist. They’ll just leave the existing law alone and let the rate go to zero, where everyone wants it anyway.”

 Thus, as the law stands today, Federal Estate Tax will be

  • zero in 2010;
  • with certain exceptions the tax basis step-up will be repealed for 2010;
  • The estate tax exemption will return to $1,000,000 in 2011.

It is an interesting and continuing revelation about the extent of the massive gridlock in the current Congress when the Democrats could not even muster enough votes to pass a mere extension of the $3.5 million exemption for the first three months of 2010.

 

It remains to be seen whether or not enough votes can be mustered to make any estate tax changes in 2010. If the Senate could not pass an estate tax bill with a 60 vote majority, I am skeptical that it will get accomplished in 2010.