Daily Three: August 3

1. On July 16, 2020, Delaware’s Governor signed House Bill 341 into effect, thereby amending Delaware’s General Corporation Law (DGCL) to add “pandemics” to the list of “catastrophes” giving rise to emergency board powers. Learn more about the amendment and what it might mean for your company. Authored by Chris Dombkowski

2. On July 28, 2020, the Federal Reserve Board announced an extension of its Paycheck Protection Program, Main Street Lending Program, and other lending facilities through December 31, 2020. Such programs and lending facilities were previously set to expire on or around September 30, 2020.  The extension is intended to provide additional economic assistance to potential facility participants and help with their financial planning. Learn more about the extension’s implications here. Authored by Emily Watson

3. On Friday, July 31, the IRS issued proposed regulations to the three-year carried interest rule (Code Section 1061) affirming that the rule does not apply to gains from the sale of most rental real estate investments that qualify as Code Section 1231 property, which is “trade or business” property. In the case of real estate, Code 1231 property generally includes most real estate held for rent, with the notable exceptions of ground leases and single tenant triple net leased property where the landlord does not provide any services. The proposed regulations and their implications are explained in more detail here. Authored by Michael Tuchman

For more resources and LP's response to COVID-19, visit this webpage.