Am Law Firms Secures $ 210 Million In Canceled PPP Loans
What would you like to know
- About $ 210 million in Paycheck Protection Program loans were canceled.
- Several companies have yet to disclose whether their loans have been canceled or not.
- Business executives and experts expect most, if not all, businesses to ask for forgiveness.
At least 27 Am Law 200 firms had a total of $ 210 million in fully or partially canceled Paycheck Protection Program loans this summer, with the vast majority of firms reporting the money went to payroll, according to a ProPublica database compilation of data from the Small Business Administration (SBA).
Still, there are 15 companies with a total of $ 125 million in loans that have yet to disclose whether they have had their loans canceled.
Am Law 200 firms have received around $ 330 million out of a total of $ 800 billion in PPP loans disbursed since May 2020. So far, $ 279 billion in loans have already been canceled, according to the SBA, while An additional $ 81 billion is currently under consideration.
According to the database, the vast majority of that money went to payroll expenses. Thompson & Knight, which recently confirmed plans to merge with Holland & Knight in August, took out a $ 10 million loan and said in its request that the entire amount would go to payroll. The loan was canceled.
Robins Kaplan indicated that of the $ 10 million requested, $ 7.6 million would go to payroll while $ 611,098 would go to health care and $ 1.8 million would go to rent, according to the database. ProPublica data, which noted that the loan had been canceled. The average amount among businesses with canceled loans is around $ 8 million.
Many companies that have taken out the loans have said they are key to avoiding layoffs during the dark days of last summer’s pandemic. Robins Kaplan chairman Ronald Schutz said the reduction in business expenses along with the loan helped the company avoid layoffs and pay cuts. The company ended the year with revenue down 2.2% from 2019 and earnings per partner up 1.5%.
“I think the program has served its purpose, which is to allow companies to keep employees that they would otherwise have laid off. Now that we are sitting here with a booming stock market, people tend to have short memories of what the world was like back then, âSchutz said.
To qualify for a discount, law firms must maintain staffing and compensation while allocating at least 60% of the loan to salary expenses. Canceled loans are also taxable in some states, including Florida, Texas, and Utah. Most law firm executives expect their loans to be canceled. Bruce MacEwan, of legal consultancy Adam Smith Esq., Said he also expects most, if not all law firms to seek forgiveness.
âIt might be difficult now to get back into our March 2020 shoes, but it was very scary,â MacEwan said. âI have no objection for a company that has taken out PPP loans. In fact, I think it was the responsible thing to do with all the scary strangers.
According to an analysis of ALM data, companies that received PPP loans did not fare better financially than their peers who did not.
Below is the full list of Am Law 200 firms whose loans have been canceled:
- Thompson and knight
- Armstrong Teasdale
- Robin kaplan
- Bond, Schoeneck & King
- Hodgson russ
- Lewis Roca Rothgerber Christie
- Allen Matkins Leck Gamble Mallory & Natsis
- Pitney Day
- Robinson and Cole
- Morris, Manning and Martin
- Phelps dunbar
- Miles and Stockbridge
- Miller, Canfield, Paddock and Stone
- McElroy Deutsch Mulvaney & Carpenter
- Shumaker, Loop & Kendrick
- Schiff hardin
- Cole, Scott and Kissane
- Ice cream maker
- Rutan & Tucker
- Smith, Gambrell and Russell
- Benesch, Friedlander, Coplan & Aronoff
- Hinckley, Allen and Snyder
- Curtis, Mallet-PrÃ©vost, Colt & Mosle
- Arnall Golden Gregory
- Williams mullen
- Closures & Bowen
Yet several companies have not disclosed whether their loans have been canceled:
- Boies Schiller & Flexner
- Wiley Rein
- Kasowitz Benson Torres
- Spencer fane
- Pryor cashman
- Stroock & Stroock & Lavan
- Kobre & Kim
- Kelley Drye and Warren
- Sherman and Howard
- Knobbe Martens
- Adams and Reese
- snow butler
- Cole schotz
- Porter Wright Morris & Arthur
The story has been updated to reflect that Hughes Hubbard & Reed said he paid off his loan.