Last month the Securities and Exchange Commission (the “SEC”) proposed a number of amendments to the existing rules governing exempt offerings. These amendments aim to simplify the current exemption framework, in order to improve access to capital and investment opportunities. 1. Regulation D The proposed rules make several changes to the Regulation D exemption in an attempt to expand its…
Small and mid-sized companies that are affected by Covid-19, but otherwise profitable, will soon have opportunity to apply for loans via the $600 billion Main Street Business Lending Program, created under the CARES Act. Who is Eligible? Size/Revenue Test A company with either: 10,000 or fewer employees**, or $2.5 billion or less in 2019 revenue **The CARES Act set a…
Half the battle was getting your piece of the $349 billion package of forgivable small-business loans, known as the Paycheck Protection Program (PPP). Now that you have the funds, what’s next? First of all – If you’re an eligible employer who is reading this, and has NOT yet applied through your banker for a PPP loan, please read my earlier…
On April 1, 2020, Ohio Governor Mike DeWine signed Executive Order 2020-08D, which “requests” landlords and mortgage lenders with Ohio small business tenants and commercial borrowers to pause prosecution of lease and loan defaults caused by the COVID-19 pandemic. Specifically, the Order frames the directives as three separate “requests”: 1. “Landlords are requested to suspend, for a term of at…
Over the last few weeks, in the wake of COVID-19, multiple Federal and State laws have been passed that impact employment law. The attorneys at Cavitch have provided comprehensive summaries on these new laws. Below is a brief summary of the benefits employees are entitled to under the new legislation to date, as well as areas where Federal and Ohio…
Cavitch is advising its lending and business clients on the implications of the CARES Act, which President Trump signed into law on March 27. One of the most critical components of the Act is $350 billion in new SBA loans under Section 7(a) of the Small Business Act. Banks will begin taking applications for businesses on April 3, and on…
As we hunker down at home in an unprecedented time of worry and unpredictability, I cannot help but wonder if any business with any type of credit exposure will emerge from the COVID-19 pandemic totally unscathed. And if the numerous off-the-record conversations with alternative lenders and other capital markets experts I’ve had in recent days are to be taken at…
In response to the coronavirus crisis, the Cleveland law firm of Cavitch, Familo & Durkin Co., L.P.A. is offering pro bono legal consultations to struggling small-business owners. Read more in today’s press release: CAVITCH, FAMILO & DURKIN CO., L.P.A. TO OFFER PRO BONO LEGAL CONSULTATIONS TO STRUGGLING SMALL-BUSINESS OWNERS “We are hearing a lot of anxiety in the marketplace,” said…
For the foreseeable future (at least the rest of the spring), American life will change. This includes businesses. We all need to work together to get back to a place where our economy can thrive. While we should be inclined to have grace and mercy during these times, it is wise for the business executive or business owner to have…
Yao Liu, a bi-lingual and bi-cultural lawyer, trained in both the United States and China, routinely assists clients with unique issues that arise in cross-border transactions. His article, IS YOUR PRODUCT REALLY “MADE IN THE USA”? was published in the September issue of the Cleveland Metropolitan Bar Journal and can be read below: With topics relating to trade war hitting…
