This article has been updated to include more names and comments from some company recipients.
More than three dozen Am Law 200 firms – and dozens of other law firms across the country – have received paycheck protection loans from the Small Business Administration, including Boies Schiller Flexner, Kasowitz Benson Torres and Hughes Hubbard & Reed, according to recipient data released by the SBA on Monday.
The names of applicants applying for loans over $ 150,000 range from some of the largest Am Law 200 firms, such as Boies Schiller, already in the news for a series of partner outings this year, to numerous firms. medium-sized and applicants.
In March, Congress allocated $ 350 billion in funding to provide loans to businesses amid the coronavirus pandemic and the economic turmoil that followed. While restaurants, healthcare companies, and car dealerships were among the main recipients large loans, law firms and attorneys were also eager to apply.
In total, Law.com found at least 45 law firms in the Am Law 200 – more than a fifth of the country’s 200 most profitable law firms – that received SBA loans this year.
The following Am Law 200 firms, all of which grossed over $ 100 million in 2019, received between $ 5 million and $ 10 million in loans:
- Boies Schiller Flexner
- Thompson and knight
- Wiley Rein
- Schiff hardin
- Armstrong Teasdale
- Hughes Hubbard & Reed
- Kasowitz Benson Torres
- Robin kaplan
- Spencer fane
- Pryor cashman
- Cole, Scott and Kissane
- Stroock & Stroock & Lavan
- Kobre & Kim
- Kelley Drye and Warren
- Bond, Schoeneck & King
- Hodgson russ
- Sherman and Howard
- Lewis Roca Rothgerber Christie
- Allen Matkins Leck Gamble Mallory & Natsis
- Knobbe Martens
- Pitney Day
- Robinson and Cole
- Morris, Manning and Martin
- Ice cream maker
- Adam and reese
- Phelps dunbar
- Miles and Stockbridge
- Miller, Canfield, Paddock and Stone
- snow butler
- Cole schotz
- McElroy Deutsch Mulvaney & Carpenter
- Porter Wright Morris & Arthur
- Shumaker, Loop & Kendrick
- Procopio, Cory, Hargreaves and Savitch
- Rutan & Tucker
- Smith, Gambrell and Russell
Meanwhile, Am Law 200 firms that have received loans of $ 2-5 million include Shutts & Bowen; Curtis, Mallet-Prévost, Colt & Mosle; Arnall Golden Gregory; Hinckley, Allen & Snyder; and Sullivan & Worcester.
For some of the companies that received the money, PPP loans were key to avoiding the massive layoffs and time offs that trickled through the industry.
Thompson & Knight said they applied for the loan because their “primary focus in these uncertain times is to protect our people, continue to provide exceptional service to our customers and give back to the communities we serve.”
A spokeswoman for Kasowitz said their loan, in addition to “substantial cost reduction measures and significantly reduced partner distributions”, has allowed the company to retain hundreds of employees on full pay and benefits. ” without interruption “.
And while there were dozens of Am Law 200 firms that received loans, the majority of law firms that applied for P3 funds are small and medium-sized businesses earning less than $ 100 million.
California high-end intellectual property store Keker, Van Nest & Peters received between $ 2-5 million.
Leading companies outside of the Am 200 Act that have also received loans, including Barclay Damon; Herrick, Feinstein; Best Best & Krieger; Rivkin Radler; Cullen and Dykman; Morrison Cohen; Moses and singer; Olshan Frome Wolosky; Mendes & Mont; Phillips Nizer; Carter Ledyard & Milburn; Cohen & Gresser; Labaton Sucharow; Phillips Lytle; and Seward & Kissel.
Kent Zimmermann, law firm management consultant at Zeughauser Group, said receiving a PPP loan does not necessarily mean a firm is in financial difficulty. Almost all of the companies he spoke with during the pandemic were at some point considering a PPP loan, and most of the larger Am Law 100 companies, he added, were not even eligible.
“Some companies faced existential threats during this downturn and a small group still faces existential threats,” Zimmermann said. “And personally, I don’t think it’s necessarily fair to shame organizations that have complied with the law.”
Wigdor LLP, who notably represented Vanina Guerrero in an EEOC complaint against DLA Piper linked to partner Louis Lehot and who filed a flurry of lawsuits against Fox News, was approved for a loan in April between 350,000 and 1 million dollars, according to government data. . Wigdor’s associate Douglas Wigdor said the company withdrew its application and never received the funds.
Honigman has already paid off his loan.
“Honigman had decided to repay the PPP loan before it expired in May, before the safe harbor period expired,” said Kevin Kiefer, director of business development for the company.
Looking ahead, many companies, having faced the initial turmoil and uncertainty in March, have been pleasantly surprised by a consistent level of productivity, Zimmermann added. And some firm partners are already clamoring to receive their full prints, he said. But given the increase in cases in several states and subsequent setbacks in reopenings in states like Florida and Texas, he adds that there could be a second economic wave threatening law firms in the near future. .
“It’s not over yet,” Zimmermann said.
Ryan Barber and Ben Hancock contributed to this report.
An earlier version of this article incorrectly described the type of action against DLA involving Louis Lehot. It was an EEOC complaint, not a lawsuit. The article has also been updated to reflect Wigdor’s statement that his company withdrew its application and did not receive the loan money.