The Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, which provides long-term loans directly from the SBA, has been significantly enhanced. Beginning April 6, 2021, qualified companies can borrow, on the favorable EIDL terms, up to $500,000 to fund up to 24 months Continue Reading
New PPP Rules Benefit Self-Employed Individuals
Last year, self-employed individuals who conducted their business without any employees could qualify for a Paycheck Protection Program (PPP) loan in an amount equal to approximately 20.8% (2.5 months divided by 12 months) of their 2019 annual net earnings from self-employment not to exceed Continue Reading
Court of Chancery Confirms No Breach of Fiduciary Duty in Connection with “Contrived” but Genuine Deadlock
In a memorandum opinion issued January 29, 2021, the Court of Chancery held that a defendant LLC manager/majority unitholder of EOS Investor Holding Company, LLC (Holdco), Jonathan Teller, did not breach fiduciary duties or contractual obligations owed to plaintiff, co-member Sanjiv Mehra, by Continue Reading
PPP 2.0 Changes to Prioritize Underserved Small Businesses
President Biden has announced changes to the Paycheck Protection Program 2.0 (PPP) designed to direct more funding to women-owned and minority-owned businesses as well as low- and moderate-income, rural, and other underserved communities that have so far received a disproportionally small share of Continue Reading
Insurance Recovery, Litigation & Counseling Update
As the global pandemic approaches its first anniversary, policyholders that suffered business interruption losses should analyze their insurance policies for any limitation on when they can file suit. Although insurers and some brokers may have advised policyholders that their insurance policies Continue Reading
Delaware Court of Chancery Rejects Proposition That Accounting Principles Must Be Consistently Applied during True-up Process in the Absence of Express Language Requiring Consistency
The Delaware Court of Chancery rejected a purchaser’s efforts to prevent a seller from adopting a method of calculating the post-closing purchase price adjustment that was inconsistent with the seller’s pre-closing accounting practices. In lieu of an apples-to-apples comparison, the court Continue Reading
Court of Chancery Rejects Internal Affairs Doctrine in Employment-Related Lawsuit
Also Dismisses First-Filed Delaware Action against Delaware LLC and Executive Where California Had a Materially Greater Interest in the Employment Dispute In a pair of detailed decisions, the Court of Chancery dismissed claims against Scott Holsopple (Holsopple), the chief growth officer of Continue Reading
Legal Considerations for Startup Founders
There are many business questions founders need to ask (and hopefully answer) before taking the plunge with a new venture. Often overlooked, however, are some of the legal questions founders should consider. Asking and answering the questions below will help you start your business on firm legal Continue Reading
Venture Capital & Emerging Growth Companies January 2021 Highlights
McCarter’s renowned Venture Capital & Emerging Growth Companies team empowers clients throughout the development cycle—from ideation to creation, capitalization, implementation, commercialization, and monetization. Ending 2020 on a high note We had a flurry of activity at the end of 2020, Continue Reading
Delaware Law Update 2020 Year in Review
Our Delaware Corporate, LLC and Partnership Law attorneys closely follow the opinions coming from Delaware’s Supreme Court and Court of Chancery. Our 2020 Year in Review is a collection of brief summaries of selected cases concerning Delaware Corporate, LLC and Partnership Law. Our summaries are Continue Reading