New York Commercial Finance Disclosure Law | NY State CapitolOn December 23, 2020, then Governor Andrew Cuomo signed into law NY CLS Fin Serv §§ 801-812 (the “Disclosure Law”) with the intended purpose of “requiring certain providers that extend specific terms of commercial financing to a recipient to disclose certain information about the offer to the recipient.” Although the law was slated to take effect January 1, 2022, the New York Department of Financial Services (“DFS”) issued a guidance on December 31, 2021, stating that the “obligations do not arise until the [DFS] issues final implementing regulations and those regulations take effect.” Given the latest regulations proposed by DFS provide for a compliance date six months after publication of the Notice of Adoption in the State Register, companies have until at least the summer of 2022 to comply with the Disclosure Law.

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FTC notice of penalty franchiseThe Federal Trade Commission (“FTC”) has kept itself busy as of late, issuing a series of notices to over 1,000 businesses (many of them franchise companies) advising them that they could face civil penalties for conduct that the FTC has deemed unlawful. The Notice of Penalty Offenses Concerning Money-Making Opportunities is of particular importance to franchise companies. The first round of notices went out in late October. They advised businesses that if they deceive or mislead consumers about potential earnings or otherwise make false or misleading representations in connection with a money-making opportunity, they could be subject to large civil penalties (up to $43,792 per violation).

Continue Reading FTC Issues Penalty Offenses Concerning Money Making Opportunities to Hundreds of Franchise Companies

Courts in the tri-state area are reopening, and eviction trials are proceeding in-person and virtually. A remote eviction trial makes it easier for a landlord to get before a Judge and reclaim their property; however, don’t forget that you are “in court.” Here are a few things that retail and commercial property owners may want to consider when preparing for and attending virtual eviction trials.

Continue Reading Remote Eviction Trials – Tips and Pitfalls for Retail and Commercial Property Owners

On May 26, 2021, the Superior Court of New Jersey, Appellate Division issued an important decision in Premier Physician Network, LLC v. Robert Maro, Jr., M.D., et al, (Docket No. A-1152-20) concerning the governance of New Jersey limited liability companies (LLC). The issue before the Court was whether members of an LLC were bound by the terms of an operating agreement by assent as set forth in N.J.S.A. 42:2C-12(b), which states that “[a] person that becomes a member of a limited liability company is deemed to assent to the operating agreement.” The Court held that a draft operating agreement does not become the operating agreement of an LLC unless there is an agreement of the members. Further, that assent only bounds future members of an LLC to an already agreed upon operating agreement.

Continue Reading Appellate Division Rejects Notion That Members Can Simply Assent and Not Agree to the Terms of a Newly Drafted Operating Agreement

Pursuant to the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the “Economic Aid Act”), on January 11, 2021 the latest round of Paycheck Protection Program Loans rolled out, with priority being given by the Small Business Administration via Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microloan Intermediaries (“Priority Lenders”), to their customers that did not receive a funding under the original Paycheck Protection Program. On January 13, 2021, the program will expand to the Priority Lenders and the customers seeking a second loan under the Economic Aid Act. The programs will be opened to all participating lenders shortly thereafter. The Paycheck Protection Program, which was originally established under the CARES Act, provides loans to eligible borrowers to pay payroll costs, including benefits during the covered period as set forth in the regulations. Funds may also be used to pay other certain specified expenses of the business.

Continue Reading The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act Provides Round Three of PPP Loans

On December 21st, 2020, Congress approved the second-largest federal stimulus package after the $2 trillion CARES Act that was passed in March 2020. This new COVID-relief package is in the amount of $900 billion, and will ensure that the public has a faster vaccine distribution, and will give aid to those who have lost their jobs and to small businesses that have been extremely affected by the pandemic. With this in mind, the Paycheck Protection Program (PPP) has reopened for small businesses as well. Since applications for the first PPP program were only being accepted until August 2020, this second round of loans from the COVID-relief package could possibly save thousands of businesses across the country. For the full text of the new bill, click here.

Continue Reading Finally Positive News for Nonprofits: $900 Billion COVID-Relief Package Has Been Approved by Congress

On October 14, 2020, the New Jersey Economic Development Authority (“NJEDA”) announced Phase 3 of the NJEDA’s Small Business Emergency Assistance Grant Program. Pre-registration for eligible businesses for Phase 3 funding opens TODAY (October 19, 2020) and can be done on NJEDA.com.

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On August 27, 2020, eight Nebraska football players commenced litigation against the Big Ten Conference in the District Court of Lancaster County, Nebraska. The lawsuit asserts that the Big Ten Conference’s cancellation or possible delay of the 2020 college football season was “arbitrary and capricious.” In support of the same, the student-athletes point to the SEC’s, Big 12’s and ACC’s decisions to move forward with their college football seasons.

Continue Reading Eight Nebraska Football Players Commence Litigation Against the Big Ten Seeking Reinstatement of Their Season and Monetary Damages

The New Jersey Redevelopment Authority (“NJRA”) will launch the Small Business Lease Emergency Assistance Grant Program on August 10, 2020. The program will allow businesses in 64 eligible municipalities to apply for grants of up to $10,000 for lease costs. The program will assist small business owners impacted by the COVID-19 pandemic, which also assists landlords, many of whom are also small businesses. Grants will be made on a first come, first serve basis.

Continue Reading The NJRA Will Launch the Small Business Lease Emergency Assistance Grant Program

Late Tuesday June 30, 2020, just a few hours before the expiration of Paycheck Protection Program (PPP), the Senate voted to extend the PPP five more weeks. The move was made to allow eligible small businesses that have not applied or been denied a loan under the PPP more time to claim the remaining $129 million in the program.

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