COVID-19 Resource Center
Pacific Lake has aggregated content from legal, tax, and other advisers to offer you timely business advice as this global health crisis continues to quickly evolve. Please continue to visit, as our COVID-19 Resource Center will be regularly updated. This is meant to be a shortcut, not specific legal advice for your company - if you need specific legal advice, please ask your counsel.
The resources below are primarily intended for CEOs navigating COVID-19, however we also wrote a note to search fund entrepreneurs during this time. In short, we believe it is a great time to be a search fund entrepreneur:
We are with you during this turbulent period. Please reach out to us if there is anything we can do to help.
Crafted by Biocom’s Return to Work Task Force, The Path Forward: Return to Work Guide for California’s Life Science Industry is a free resource that establishes industry standards for transitioning the world’s largest life science community back into the lab and workplace while preventing and lessening the spread of the novel coronavirus (COVID-19). Many takeaways are relevant to all industries.
An HBR article addresses what CEOs need to do differently not only to sustain, but also to strengthen their skills in a virtual setting‚ particularly during a time when their teams are looking to them more than ever for direction. The key questions explored include:
On May 13, the Treasury Department and the SBA issued updated guidance on the PPP loan program related to the certification of need that is relevant to your company. The updated guidance is an answer to the question, “How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request”. Based on the guidance, there are two key headlines:
The updated language can be found in Question 46.
This memo is based on the latest guidance from the CARES Act, Treasury Department and the SBA as of April 23, 2020, and will be updated on an ongoing basis as new information is released.
If you spend 100% of the proceeds on payroll costs, mortgage interest, rent and utilities during the 8 weeks following the loan disbursement, and you have an average number of employees during that 8 week period equal to or higher than either 1/1/20-2/29/20 or 2/15/19-6/30/19, and you haven’t reduced any individual employee compensation by 25% or more, your loan will be 100% forgiven.
As many companies start to reopen, a critical priority for businesses is to think through emerging PEOPLE implications
FAQ document published by the SBA and Treasury department as of April 6, 2020. Of note, consider question 16:
How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven? Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld....
We thought it would be helpful to share some perspective and suggestions for searchers navigating COVID-19 and the implications on their search. A few of the highlights:
Four tests for affiliation based on control apply to participants in the Paycheck Protection Program.
With the CARES Act formally signed into law, Pacific Lake would like to share a summary of the key business tax reliefs and considerations for timing and strategy development. This document can also be used as a reference when having discussions with your tax advisors and accountants.
A summary of the Families First Coronavirus Response Act that was signed into law last week and impacts paid emergency leave and sick pay for employers with less than 500 employees in the US. In addition, the attachment highlights the method for receiving tax credits to cover the cost of these newly required leave policies.
A quick FAQ provided by Sheppard Mullin on relevant employment guidlines for companies in regards to COVID-19. Topics include:
The impact and concern from COVID-19 (aka coronavirus) is growing daily. In an effort to support you and your company, we have drafted some best practices related to communicating with employees and preparing for any impact to your company. Regardless of the specific impact on your business, we believe that employees and stakeholders appreciate and value proactive communication, so we have also included an email template that can be used with employees if desired.
Details regarding the Paycheck Protection Program (SBA 7(a) Relief loans) as part of the stimulus package potentially released by the US Congress. These are different from the emergency relief loans that are available now, and from traditional SBA loans.
The advice we are getting is that companies should apply immediately - getting in at the front of the line is likely to increase the speed of approval, and applying does not commit you to taking the loan once approved, so it is a very low risk opportunity to access cash.
Spellbound will review the essentials of practicing secure digital hygiene while operating remotely. Learn about the risks that the increased attack surface poses, and discover how to continue operating effectively without compromising your company’s cybersecurity. Topics covered:
Join us Wednesday, April 1st at 2:00 EDT on Zoom at https://zoom.us/j/3207133123
There’s no registration required, but Spellbound has asked that if you plan to attend you send an email to email@example.com so that they can communicate as needed about the event.
Beginning Friday, April 3rd, Pacific will host a four-week series for searchers addressing what we feel are most salient issues of the day:
If you are interested in joining, please email Sam Long at Sam.Long@pacificlake.com.
One of your most important corporate priorities is to have a plan in place to make it to Independence Day (4th of July). Most believe by then we will either be down the infection curve, or policy makers will need to make the tough decision that America must re-open for business and accept the implications. The most important word on the lips of your management team should be: LIQUIDITY. The attached document, provided by Futaleufu Partners, explores methods for finding liquidity in the coming weeks.
The application for the Paycheck Protection Program is out – and can be submitted as early as Friday, April 3rd. I’ve attached a one page summary action plan of what you need to do this week, and the resources you can use to calculate your loan amount. Also includes our thoughts on the “affiliation” topic that many of you have asked about.
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Disclaimer: This website is for informational purposes. The information contained herein is based on matters as they exist as of the date of preparation of such material and not as of the date of distribution or any future date. Certain information contained herein has been obtained from third party sources and such information has not been independently verified. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by Pacific Lake Partners. The information herein does not constitute legal, tax, or investment advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above, the reader is encouraged to contact their own legal or tax professional.