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With just 13 decisions remaining on the docket this session, the high court's highly anticipated ruling in a case challenging the agency's leadership structure could come as early as next Monday.

Read More from: BankThink

2 weeks 1 hour ago

Brick-and-mortar merchants that have shifted to online have changed their risk profile, causing conflicts with the fintechs like Square that handle their payments. And that could be an opportunity for banks.

Read More from: BankThink

2 weeks 1 hour ago

The Paycheck Protection Program had more than $100 billion in funding left as of last Saturday, with only days remaining until the Small Business Administration stops taking new applications on June 30.

Read More from: BankThink

2 weeks 2 hours ago

Borrower relief is necessary in a national emergency, but if the exclusion of the deferred loans from troubled-debt restructurings is extended past the end of the year, safety and soundness could be compromised.

Read More from: BankThink

2 weeks 2 hours ago

The federal government has finally offered some clarity on how mom-and-pop businesses can avoid repaying their bailout loan—a major sticking point in the Paycheck Protection Program.

In the past month officials in the Small Business Administration and the Treasury Department have worked with Congress to make much-demanded changes to the law, which culminated in the PPP Flexibility Act signed by President Donald Trump on June 5.

With all remaining PPP loan applications expiring next week—June 30 is the last day to apply—here are the changes small-business owners need to know to receive forgiveness on current or future loans.

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The amount one is required to spend on payroll has shifted

The first iteration of the PPP loan required small-business owners to spend 75% of the loan money they received on employee payroll before it could be considered for forgiveness. After an outcry from small-business owners, who considered the stipulation restrictive in light of a host of other operating costs, the revised PPP loan shifts that requirement to 60%.

Read More from: Shenwick & Associates

2 weeks 3 hours ago

Arbor Bancorp and FNBH Bancorp said the pandemic had created uncertainty about the regulatory process for securing approval for the deal.

Read More from: BankThink

2 weeks 3 hours ago

The embattled German payments company filed for insolvency, while its former COO is either on the run or looking for the missing $2 billion; the giant asset manager is looking to hire more college graduates rather than poach junior bankers.

Read More from: BankThink

2 weeks 4 hours ago

June 3, 2020
International Business Times
By  

Declaring bankruptcy is never pleasant, but for small businesses it's often been disastrous. Filing under chapter 11 -- the method that allows a firm to re-organize -- was designed for large corporations. Technically, a small firm could do it, but the process was lengthy, costly, and creditor-friendly. As a result, insolvent small businesses often had to file for chapter 7, which meant closing shop entirely.

But now there's a new way to declare bankruptcy, a more debtor-friendly alternative: subchapter V. Created by the Small Business Reorganization Act (SBRA) of 2019, it became effective February 19, 2020. And then, a month later, it got even better, thanks to the CARES Act, which tripled the qualifying debt limit under this option.

Now, if you're a small business owner with less than $7.5 million in debt, and if you can demonstrate that staying open will generate enough money to repay your creditors over three to five years, you'll have a better chance at continuing to support yourself and serve your customers. 

Read More from: Shenwick & Associates

2 weeks 14 hours ago

June 12, 2020
NY Post

A large number of small US business could fail during the coronavirus recession, the Federal Reserve said on Friday, slowing recovery and creating lasting damage to the world’s largest economy.

“The nature of the economic recovery that follows the COVID-19 crisis will depend in part on the survival of small businesses,” the Fed said in its biannual monetary policy report to Congress on Friday. “The pandemic poses acute risks to the survival of many small businesses [whose] widespread failure would adversely alter the economic landscape of local communities and potentially slow the economic recovery and future labor productivity growth.”

Congress has extended some help, including $660 billion to cover payrolls and overhead. About three-quarters of small businesses with employees have applied for the aid, with many getting funding, the Fed said. Still, “some industries may face an ongoing need” after the program expires this summer.

Meanwhile, job losses have been steeper at small businesses than large ones, with many small firms stopping paychecks entirely, the Fed said. Some 30 percent to 40 percent of small firms in sectors most affected by social distancing have gone inactive since February.

Read More from: Shenwick & Associates

2 weeks 15 hours ago

June 22, 2020
NY Post
by: Priscilla DeGregory

Fashion brand Valentino wants to break the lease on its chic Fifth Avenue location — because the coronavirus is stopping it from conducting “high-end” business, a new lawsuit says.

The Italian luxury retail and design company says even if the Big Apple overcomes the pandemic, “the social and economic landscapes have been radically altered in a way that has drastically, if not irreparably, hindered Valentino’s ability to conduct high-end retail business,” at the primo shopping locale, according to the Manhattan Supreme Court lawsuit filed Sunday.

Valentino is asking a judge to allow it to break its pricey lease with landlord 693 Fifth Owner, LLC by the end of the year, despite a contract that is slated to run through July 2029, the court papers say.

Valentino — which leases four levels at the location — initially signed the contract in May 2013, the court documents say.

Since the state “PAUSE” executive order went into effect closing businesses for months — and which is now only allowing them to open in a very limited way — Valentino cannot “offer in-boutique retail sales, or associated services such as fittings … as the company operated before the COVID-19 pandemic,” the lawsuit claims.

Read More from: Shenwick & Associates

2 weeks 15 hours ago

June 17, 2020
bloomberglaw.com

Retailers hit by the economic downturn are considering bankruptcy protections. Perkins Coie LLP attorneys say the CARES Act offers small businesses access to the streamlined Subchapter 5 process and recent rulings from bankruptcy courts provide cash flow relief for certain retailers operating under Chapter 11 through deferral of rent obligations, at least for now.

JCPenney’s bankruptcy filing on May 15 is one of the latest in a string of high-profile retailers, including Neiman Marcus, seeking bankruptcy protection in the wake of the Covid-19 public health emergency. Many other retailers may soon follow suit given the virus’ economic consequences and the industry issues many retailers have long faced.

Fashion, cosmetics, and personal care retailers may be particularly hard hit as they often rely on in-store experiences for sales. Experiences like spritzing fragrances, testing creams, running hands over fabrics are gone in the age of stay-at-home orders, a stagnating economy, record unemployment, and nearly nonexistent foot traffic

However, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and recent bankruptcy rulings may provide retailers, including small businesses, with much needed relief, albeit in certain temporary ways.

Read More from: Shenwick & Associates

2 weeks 15 hours ago

A sneak peek of a new podcast launching on American Banker later this summer as part of our Leaders Forum, where senior voices and innovators will share their leadership experiences and perspectives on business-critical topics. Arizent CEO Gemma Postlethwaite talks with Ernie Johannson, BMO’s Group Head of North American Personal and Business Banking, about leadership during the Covid-19 crisis, organizational agility and lessons in discernment.

Read More from: BankThink

2 weeks 15 hours ago

An imminent high court ruling about the independence of the bureau's director, coupled with an election victory for Joe Biden, could doom a plan to extend GSEs' exemption from tough debt-to-income requirements on mortgages.

Read More from: BankThink

2 weeks 17 hours ago

What Happens When Creditors Can Collect??The Pandemic has brought relief to folks on my side of the fence – the consumers, the borrowers, from the banks and mortgage and finance companies due to government orders or voluntarily refraining from collection action – but for how long? Michigan Eviction Freeze Among...

The post What Happens When Michigan Freeze On Evictions et. al. Ends??? appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.

Read More from: Stop Creditor

2 weeks 18 hours ago

Top executives from Citigroup and Goldman Sachs offered warnings Wednesday about why the U.S. economy may be slow to bounce back from the coronavirus pandemic.

Read More from: BankThink

2 weeks 18 hours ago

More than half of Toronto's population is foreign-born — a higher proportion than New York, Paris, London or Sydney — and about 52% identify as a visible minority. But the city's diversity fades in the upper echelons of its financial firms.

Read More from: BankThink

2 weeks 19 hours ago

The companies said the "meaningful impacts" of the coronavirus pandemic led them to terminate the $2.7 billion deal.

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2 weeks 19 hours ago

The lawmakers argued in a letter to the Federal Reserve that suspending dividend payouts would be the "prudent course of action," allowing banks to build their capital cushions and continue lending during the coronavirus pandemic.

Read More from: BankThink

2 weeks 20 hours ago

Upstart, which specializes in the use of alternative data and AI in credit decisions, will make car loans directly and sell its technology to banks and other lenders.

Read More from: BankThink

2 weeks 21 hours ago

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