Client Alerts, News Articles & Blog Posts

Everything you need to know about BMD and the industry.

Term Sheets Finalized for Main Street Lending Program

The Main Street Lending Program (“MSLP”) is designed to provide support to small and medium-sized businesses during the current pandemic. The availability of additional credit is intended to help companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize. The loans will be provided by funds invested by the Department of Treasury. The terms sheets have been finalized for the program, which should be up and running shortly.

Unless extended, the MSLP loans will only be available through September 30, 2020. They are intended to provide longer term credit than the PPP loans and MSLP funds are to be used to enable employee retention. Although MSLP loans are full recourse and non-forgivable, they have very favorable terms such as the deferral of principal and interest payments for the first 12 months of the loan. Also, in certain instances MSLP loans may be unsecured.

There are three types of loans under the MSLP:  (1)  Main Street New Loan Facility (“New Loan”), (2)  Main Street Priority Loan Facility (“Priority Loan”), and (3) Main Street Expanded Loan Facility (“Expanded Loan”). The criteria for eligibility are the same for all three programs. A borrower must meet the following criteria to apply for the program: 

  1. Borrower must have been in business prior to March 13, 2020;
  2. Borrower must be eligible to receive loans from the SBA as amended by the CARES Act;
  3. Borrower must be a US business;
  4. Borrower must make all certifications required;
  5. Borrower must have less than 15,000 employees or 2019 annual revenues of less than $5 billion;
  6. Borrower must not be an air carrier that received funding under the CARES Act; and
  7. Borrower can only participate in one loan program – New Loan, Priority Loan, or Expanded Loan – and cannot participate in the Primary Market Corporate Credit Facility.  However, the Borrower is still eligible if it received a PPP loan under the CARES Act.

Each loan type differs based on the borrower’s credit and outstanding debt. The term sheets for each loan can be found at the following links: New Loan, Priority Loan, and Expanded Loan.

Please contact your primary BMD attorney for further questions.  

Lockdowns, Landlords, & Litigation: Abercrombie & Fitch Flips The Script on Simon Property Group Inc.

Novel litigation between commercial property owners and tenants arises from COVID-19 lockdowns. Typically, owners sue for nonpayment of rent. But in Franklin County, Ohio, a large retail tenant turned the tables and sued the owner to recoup payments.

UPDATE: Ohio Businesses Remain Required to Post Exceptions to State-Wide Mask Mandate at All Entrances

On August 1, 2020, Lance D. Himes, Interim Director of the Ohio Department of Health, issued an amended order continuing the requirement that Ohio businesses post at all entrances any permitted exceptions they provide to customers, patrons, visitors, contractors, vendors and similar individuals to use facial coverings.

2020 Marcum National Construction Survey Marks a New, Post-Pandemic Construction Environment

The results of the 2020 Marcum National Construction Survey are in, and the construction industry’s outlook for the remainder of 2020 and beginning of 2021 remains cautiously optimistic despite the COVID-19 global pandemic. Ability to find skilled labor, healthcare expenses, and material costs remain the top concerns for the industry, while “lack of future work” joins the list.

Wrongful Death Lawsuits in the Wake of COVID-19

Several major “essential business” employers, including Walmart and Tyson, have been served with wrongful death lawsuits in relation to COVID-19. As many Ohio employees begin to return to work, employers should be prudent in following workplace safety practices.

We are Working in a Virtual, Video-Conferencing World – But What About Wiretapping?

Businesses and other organizations often have a need or desire to record telephone conversations related to their business interests and customer dealings; however, this practice is not always permissible as federal and state laws vary on this issue. Knowing and understanding your jurisdiction’s rules and regulations on this practice is essential to remaining in compliance with the law.