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Katharine Kohm

This author Katharine Kohm has created 4 entries.

U.S. SBA Corrects Rulemaking on Paycheck Protection Program Loans for Construction Businesses

Practice area:

In a whirlwind of legislation, rulemaking,  guidance, and answers to FAQs on the CARES Act, inevitably confusion arose related to business eligibility for the Paycheck Protection Program’s (PPP).   Under the PPP, $349 Billion in loan funding is available for businesses impacted by COVID-19.  Eligible businesses can borrow up to 2.5 times their average monthly payroll to cover costs such as payroll (mostly), as well as rent, mortgage interest, and utilities.  And if certain requirements are met by the business, all or almost all of the PPP loan will be forgiven.  Even putting aside the potential forgiveness benefit, the PPP loans offer favorable terms for businesses – low interest, no collateral, and no personal guarantees. Construction businesses clearly have a need for these PPP loans in an effort to blunt the immediate economic impacts of delayed, slowed, or stopped projects.

However, in a seeming contradiction to the CARES Act statutory language, which allowed businesses with 500 or fewer employees to apply for the PPP loans, the U.S.

Emergency Rule – Rhode Island Contractors’ Registration and Licensing Board (CRLB)

An emergency rule of Rhode Island CRLB went into effect this morning “in response to the State of Emergency issued by the Governor.”  The rule seeks “limit in-person contact while continuing to efficiently administer the CRLB statutes, rules, and regulations.  This Emergency Rule shall remain in effect until such time as the State of Emergency is lifted.” For more, please see the CRLB website.

In substance, this emergency rule confirms that the CRLB remains open for business.  It is accepting applications for new licenses and registrations as well as renewals of the same by mail or deposited in its new, on-site drop boxes at its office.  To the extent a new or renewing applicant requires an examination or educational training, which cannot be completed during the RI State of Emergency, the applicant may apply for a temporary waiver for examination or educational training.   Note that any registration or license issued with a waiver will expire 90

Regulations Alert ! Rhode Island Contractors, Home Inspectors, & More

Practice area:

On December 19, 2019, the Rhode Island Contractors Registration and Licensing Board’s (“CRLB”) revised regulations for contractors and new regulations home inspectors, well drillers/pump installers/water-filtration contractors, and commercial roofers will go live.  Here’s a link to the Regulations.  

For the commercial roofers, home inspectors, and well drillers/pump installers/water-filtration contractors, the new regulations create a licensing regime pursuant the Rhode Island statutes.  See R.I. Gen. Laws 5-65.1- 1 et seq. (home inspectors); R.I. Gen. Laws 5-65.2- 1 et seq. (well drillers et al); R.I. Gen. Laws 5-73-1 et seq (commercial roofers).  Previously the licensing requirements were in place by statute but lacked the necessary procedural and enforcement mechanisms.  Now, the CRLB regulations present application requirements including a licensing examination, certain standards of practice and performance, and continuing education requirements to maintain the license going forward.  Each professional will be required to apply and become licensed with the CRLB by or before April 1, 2020 when the

Clawback Agreements – Friend or Foe?

Practice area:

As construction attorneys, we are no strangers to voluminous productions of client documents and communications, both in electronic and hardcopy formats, during discovery. Even with proper safeguards in place during document review, there exists the possibility that some privileged material may accidentally slip over to an opposing party.  Production of such material to a third party, especially an adversary, runs the risk of waiving attorney-client privilege or attorney work product privilege.

Rule 502(b) of the Federal Rules of Evidence creates somewhat of a safety net for inadvertent disclosures, but requires compliance with a number of steps. Fed. R. Evid. 502(b) (“disclosure does not operate as a waiver in a federal or state proceeding if: (1) the disclosure is inadvertent; (2) the holder of the privilege or protection took reasonable steps to prevent disclosure; and (3) the holder promptly took reasonable steps to rectify the error, including (if applicable) following Federal Rule of Civil Procedure 26 (b)(5)(B) [concerning inadvertent production of trial preparation materials].”) Note also that