KMK Law Corporate & Securities Blog

M&A practitioners must take into account the events surrounding the Russian invasion of Ukraine and the accompanying international unrest when contemplating a proposed transaction.  These events will impact M&A transactions both in the short term and the long term.  With the situation unfolding and changing day to day, potential buyers and sellers should consult counsel on how the Russia and Ukraine escalation will affect their business today, and how it may affect their business operations going forward.  Below is a summary of topics to consider.

The United States and the rest of the world are ramping up severe economic sanctions and export controls in response to the Russian invasion of Ukraine. This is an evolving situation, and it is important to monitor the evolving sanctions to ensure compliance with United States and global sanctions, as well as to understand the updated export controls.  The imposed sanctions consist of two parts: (i) extreme financial sanctions ranging from specific individuals to Russian financial institutions, and (ii) export controls designed to deny Russia from importing advanced technologies in the Russian defense, aviation and maritime sectors.

As you are probably aware, the State of Ohio issued a "Stay at Home Order" requiring, with certain exceptions, all individuals currently living within the State of Ohio to stay at home or at their place of residence and that all non-essential businesses and operations must cease.

On March 19, 2020, the SBA approved Ohio’s application to qualify for the Economic Injury Disaster Loan Program. Small businesses in Ohio may now apply directly to the SBA for low interest working capital loans of up to $2 million.

As many businesses enter uncharted territory as the coronavirus pandemic reaches new heights, we have received numerous inquiries regarding the Economic Injury Disaster Loan Program. This update will address three questions: (1) When will the funds be available to Ohio businesses under the Economic Injury Disaster Loan Program, (2) Who classifies as a “small business?” and (3) is collateral required?  

On March 15, 2020, Governor Mike DeWine and Lieutenant Governor Jon Husted announced that the Ohio Development Services Agency (“ODSA”) has started the process to make low interest, long term working capital loans from the U.S. Small Business Administration (the “SBA”) available to Ohio businesses and non-profits that have been severely impacted by the coronavirus (“COVID-19”) pandemic.